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Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

DESCRIP

TION OF BUSINESS AND

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

PDF Solutions, Inc. (the “Company” or “PDF”), provides differentiated data and analytics solutions to the semiconductor and electronics industries. The Company offers an end-to-end analytics platform that empowers engineers and data scientists across the semiconductor ecosystem to rapidly improve the yield, quality, and profitability of their products.

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all significant intercompany balances and transactions.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates in these financial statements include revenue recognition, stock-based compensation expense and accounting for income taxes. Actual results could differ from those estimates.

Concentration of Credit Risk

Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company maintains its cash and cash equivalents with what it considers high credit quality financial institutions.

The Company primarily sells its technologies and services to companies in Asia, Europe and North America within the semiconductor industry. As of

December

31,

2018,

two

customers accounted for

56%

of the Company’s gross accounts receivable and

one

customer accounted for

37%

of the Company’s revenues for

2018.

As of

December

31,

2017,

two

customers accounted for

56%

of the Company’s gross accounts receivable and

one

customer accounted for

40%

of the Company’s revenues for

2017.

See Note

for further details. The Company does

not

require collateral or other security to support accounts receivable. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition. The Company maintains allowances for potential credit losses. The allowance for doubtful accounts, which was based on management’s best estimates, could be adjusted in the near term from current estimates depending on actual experience. Such adjustments could be material to the consolidated financial statements.

Cash, Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with an original maturity of

days or less to be cash equivalents. Investments with original maturities greater than

three

months and less than

one

year are classified as short-term investments.

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives (in years) of the related asset as follows:

Computer equipment		3
Software		3
Furniture, fixtures, equipment and test equipment	3	-	10
Leasehold improvements	Shorter of estimated useful life or term of lease

Long-lived Assets

The Company’s long-lived assets, excluding goodwill, consist of property and equipment and intangible assets. The Company periodically reviews its long-lived assets for impairment

For assets to be held and used, the Company initiates its review whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group

may

not

be recoverable. Recoverability of an asset group is measured by comparison of its carrying amount to the expected future undiscounted cash flows that the asset group is expected to generate. If it is determined that an asset group is

not

recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset group exceeds its fair value.

Goodwill

The Company records goodwill when the purchase consideration of an acquisition exceeds the fair value of the net tangible and identified intangible assets as of the date of acquisition. The Company performs an annual impairment assessment of its goodwill during the

fourth

quarter of each calendar year or more frequently if required to determine if any events or circumstances exist, such as an adverse change in business climate or a decline in the overall industry demand, that would indicate that it would more likely than

not

reduce the fair value of a reporting unit below its carrying amount, including goodwill. If events or circumstances do

not

indicate that the fair value of a reporting unit is below its carrying amount, goodwill is

not

considered to be impaired and

further testing is required. If further testing is required, the Company performs a

two

-step process. The

first

step involves comparing the fair value of its reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the

second

step of the test is performed by comparing the carrying value of the goodwill in the reporting unit to its implied fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. For the purpose of impairment testing, the Company has determined that it has

one

reporting unit. There has been

impairment of goodwill for any periods presented.

Accounts Receivable

Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within

-month period. Unbilled accounts receivable is determined on an individual contract basis. Unbilled accounts receivable, included in accounts receivable, totaled

$22.2

million as of

December 31, 2018

and

2017.

Unbilled accounts receivable that are

not

expected to be billed and collected during the succeeding

-month period are recorded in other non-current assets and totaled

$5.3

million and

$8.6

million as of

December 31, 2018

and

2017,

respectively. The Company performs ongoing credit evaluations of its customers’ financial condition. An allowance for doubtful accounts is maintained for probable credit losses based upon the Company’s assessment of the expected collectability of the accounts receivable. The allowance for doubtful accounts is reviewed on a quarterly basis to assess the adequacy of the allowance.

Allowance for doubtful accounts are summarized below (in thousands):

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions/ Write-offs of Accounts		Balance at End of Period
Allowance for doubtful accounts
2018	$	374	$	—	$	42	$	332
2017	$	200	$	174	$	—	$	374
2016	$	299	$	—	$	99	$	200

Software Development Costs

Internally developed software includes software developed to meet our internal needs to provide solution implementation services to our end-customers. These capitalized costs consist of internal compensation related costs and external direct costs incurred during the application development stage and are amortized over their useful lives, generally

six

years. The costs to develop software that is marketed externally have

not

been capitalized as we believe our current software development process is essentially completed concurrent with the establishment of technological feasibility. As such, all related software development costs are expensed as incurred and included in research and development expense in our consolidated statements of operations and comprehensive income (loss).

Research and Development

Research and development expenses consist primarily of personnel-related costs to support product development activities, including compensation and benefits, outside development services, travel, facilities cost allocations, and stock-based compensation charges. Research and development expenses are charged to operations as incurred.

Stock-Based Compensation

Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally

four

years. The Company has elected to use the Black-Scholes-Merton option-pricing model, which incorporates various assumptions including volatility, expected life and interest rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees. The interest rate assumption is based upon observed Treasury yield curve rates appropriate for the expected life of the Company’s stock options. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Income Taxes

The Company's provision for income tax comprises its current tax liability and change in deferred tax assets and liabilities. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities. The measurement of current and deferred tax assets and liabilities is based on provisions of enacted tax laws; the effect of future changes in tax laws or rates are

not

anticipated. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more likely than

not

to be recoverable against future taxable income.

U.S. taxes are provided on earnings of non-U.S. subsidiaries, to the extent such earnings are deemed to be permanently invested. The Company's income tax calculations are based on application of the respective U.S. federal, state or foreign tax laws. The Company’s tax filings, however, are subject to audit by the respective tax authorities. Accordingly, the Company recognizes tax liabilities based upon its estimate of whether, and the extent to which, additional taxes will be due when such estimates are more-likely-than-

not

to be sustained. An uncertain income tax position will

not

be recognized if it has less than a

50%

likelihood of being sustained. To the extent the final tax liabilities are different from the amounts originally accrued, the increases or decreases are recorded as income tax expense or benefit in the consolidated statements of operations and comprehensive income (loss).

Net Income

(Loss)

Per Share

Basic net income (loss) per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. Dilutive potential common shares consist of incremental common shares issuable upon exercise of stock options, upon vesting of restricted stock units, contingently issuable shares for all periods and assumed issuance of shares under employee stock purchase plan.

dilutive potential common shares are included in the computation of any diluted per share amount when a loss from continuing operations was reported by the Company.

Foreign Currency Translation

The functional currency of the Company’s foreign subsidiaries is the local currency for the respective subsidiary. The assets and liabilities are translated at the period-end exchange rate, and statements of operations are translated at the average exchange rate during the year. Gains and losses resulting from foreign currency translations are included as a component of other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the consolidated statements of operations and comprehensive income (loss).

Derivative Financial Instruments

The Company operates internationally and is exposed to potentially adverse movements in foreign currency exchange rates. The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities. The Company does

not

use foreign currency contracts for speculative or trading purposes. The Company records these forward contracts at fair value. The counterparty to these foreign currency forward contracts is a large global financial institution that the Company believes is creditworthy, and therefore, we believe the credit risk of counterparty non-performance is

not

significant. These foreign currency forward contracts are

not

designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded into earnings as a component of interest and other income (expense), net and offsets the change in fair value of the foreign currency denominated monetary assets and liabilities, which are also recorded in interest and other income (expense), net. The duration of these forward contracts is usually between

two

three

months.

Litigation

From time to time, the Company is subject to various claims and legal proceedings that arise in the ordinary course of business. The Company accrues for losses related to litigation when a potential loss is probable and the loss can be reasonably estimated in accordance with Financial Accounting Standard Board ("FASB") requirements. As of

December 31, 2018,

the Company is

not

a party to any material legal proceedings, thus

loss was probable and

amount was accrued.

Recently Adopted Accounting

Pronouncements

May 2014,

the FASB issued Accounting Standards Update (“ASU”)

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

), which supersedes the revenue recognition requirements in Revenue Recognition (Topic

605

). Subsequently, the FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. Under Topic

606,

the new revenue recognition standard provides a

five

-step analysis of transactions to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted this new standard on the

first

day of the

first

fiscal quarter of fiscal

2018.

The Company chose to adopt the standard using the modified retrospective transition method. See Revenue Recognition, in Note

for further information, including further discussion on the impact of adoption and changes in accounting policies relating to revenue recognition.

August 2016,

the FASB issued ASU

No.

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments. The purpose of this standard is to clarify the treatment of several cash flow categories. This update is effective for annual periods beginning after

December 15, 2017,

and interim periods within those fiscal years. The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

November 2016,

the FASB issued ASU

No.

2016

18,

Statement of Cash Flows (Topic

230

): Restricted Cash, that will require that the amounts generally described as restricted cash and restricted cash equivalents would be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period amounts shown on the statement of cash flows. The new guidance also requires certain disclosures to supplement the statement of cash flows. This update is effective for annual periods beginning after

December 15, 2017,

and interim periods within those fiscal years. The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

January 2017,

the FASB issued ASU

No.

2017

01,

Business Combinations: Clarifying the Definition of a Business, which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The guidance is effective for fiscal years beginning after

December 15, 2017.

The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation-Stock Compensation (Topic

718

) Scope of Modification Accounting. This standard clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

The standard is effective for interim and annual reporting periods beginning after

December 15, 2017.

The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

March 2018,

the FASB issued ASU

No.

2018

05,

Income Taxes (Topic

740

): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118.

The staff of the SEC recognized the complexity of reflecting the impacts of the Tax Cuts and Job Act (“TCJA”), and on

December 22, 2017,

issued guidance in Staff Accounting Bulletin

118

(SAB

118

), which clarifies accounting for income taxes under Accounting Standards Codification (ASC)

740

if information is

not

yet available or complete and provides for up to a

one

-year period in which to complete the required analysis and accounting (the measurement period). The Company accounted for the tax effects of the TCJA under the guidance of SAB

118,

on a provisional basis as of

December 31, 2017

and through the

first

three

quarters of

2018.

The accounting for TCJA was completed as of

December 31, 2018.

Refer to Note

Income Taxes, for further discussion regarding the impact of this standard to the Company's consolidated financial statements.

Recent

Accounting Standards

or Updates

Not

Yet Effective

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

). The update requires that most leases, including operating leases, be recorded on the balance sheet as an asset and a liability, initially measured at the present value of the lease payments. Subsequently, the lease asset will be amortized generally on a straight-line basis over the lease term, and the lease liability will bear interest expense and be reduced for lease payments. The amendments in this update are effective for public companies’ financial statements issued for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. In

July 2018,

the FASB issued ASU

No.

2018

- Leases (Topic

842

): Targeted Improvements (ASU

No.

2018

). Prior to ASU

No.

2018

11,

a modified retrospective transition was required for financing or operating leases existing at or entered into after the beginning of the earliest comparative period presented in the financial statements. ASU

No.

2018

allows entities an additional transition method to the existing requirements whereby an entity could adopt the provisions of ASU

No.

2016

by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. In

December 2018,

the FASB issued ASU

No.

2018

20,

Leases (Topic

842

): Narrow-Scope Improvements for Lessors, which clarified how lessors should apply certain aspects of the new lease standard. The Company intends to adopt this guidance in the

first

quarter of fiscal

2019

using the new transition method provided by ASU

No.

2018

11.

The adoption of this standard will result in the recognition of right-of-use assets and lease liabilities from its long-term operating lease obligations, and is expected to have a material impact on the Company's consolidated balance sheet.

January 2017,

the FASB issued ASU

No.

2017

04,

Intangibles - Goodwill and Other (Topic

350

). This standard eliminates step

from the annual goodwill impairment test. This update is effective for annual periods beginning after

December 15, 2019,

and interim periods within those fiscal years, with early adoption permitted, and is to be applied on a prospective basis. The Company does

not

anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.

February 2018,

the FASB issued ASU

No.

2018

02,

Income Statement – Reporting Comprehensive Income (Topic

220

): Reclassification of Certain Tax Effect from Accumulated Other Comprehensive Income. This update allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the TCJA enacted in

December 2017.

This update will be effective for the Company for fiscal years beginning after

December 15, 2018

and interim periods within those fiscal years. Early adoption is permitted. The Company does

not

anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.

August 2018,

the FASB issued ASU

No.

2018

15,

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic

350

): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The new guidance clarifies the accounting for implementation costs incurred to develop or obtain internal-use software in cloud computing arrangements. Further, the standard also requires entities to expense the capitalized implementation costs of a hosting arrangement over the term of the hosting arrangement. This standard is effective for the Company beginning in the

first

quarter of

2020.

Early adoption is permitted. ASU

No.

2018

should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company has

not

yet determined the impact of this standard on its consolidated financial statements.

Note 2 - Revenue Recognition

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Text Block]

REVENUE RECOGNITION

January 1, 2018,

the Company adopted Topic

606,

using the modified retrospective transition method applied to those contracts which were

not

completed as of

January 1, 2018.

Under this method, the Company evaluated contracts that were in effect at the beginning of fiscal

2018

as if those contracts had been accounted for under Topic

606

from the beginning of their terms. Upon adoption, the Company recognized the cumulative effect of adopting this guidance as an adjustment to accumulated deficit on the date of initial application. The comparative information in prior periods has

not

been restated and continues to be reported under the accounting standards in effect for those periods.

The Company also considered the impact of subtopic ASC

340

40.

Prior to the adoption of Topic

606,

the Company expensed commission costs and related fringe benefits as incurred. Under ASC

340

40,

the Company is required to capitalize and amortize the incremental costs of obtaining or fulfilling a contract over the period of the expected benefit. Incremental costs of obtaining and fulfilling a contract are recognized as an asset if the costs are expected to be recovered.

The most significant impacts of the adoption of Topic

606

are as follows:

	●	At the adoption date, the Company recorded a net decrease of $4.4 million to accumulated deficit related to the acceleration of revenue required by the adoption of Topic 606 using the modified retrospective method and the capitalization of incremental sales commission costs, net of related deferred tax impact. Under the modified retrospective method, a portion of revenue for uncompleted contracts, which would have been recognized in future periods under Topic 605, was accelerated and recognized as an adjustment to accumulated deficit as of the date of adoption. As a result, the beginning balance of accounts receivable on January 1, 2018 increased by $0.8 million, contract assets were established at $1.9 million and deferred revenue decreased by $2.5 million. The Company capitalized $0.5 million of incremental sales commission costs at the adoption date directly related to obtaining customer contracts and will amortize these costs over the lives of the contracts for which such commissions are paid.
	●	For fiscal 2018, revenue generated under Topic 606 is expected to be slightly higher than revenue would have been under Topic 605. This is the result of a combination of factors, including the reduction of deferred revenue that under Topic 605 would continue to be recognized as revenue in 2018 and beyond, as well as changes in the timing of revenue recognition as discussed below. The actual effect on revenue recognized for the year ended December 31, 2018 was approximately $1.2 million.

The adoption of Topic

606

impacted the Company’s accounting for certain commercial software multi-element arrangements that combine software-related deliverables, which

may

include software contracts with varying terms and service elements. Topic

605

required establishing vendor specific objective evidence of fair value ("VSOE"), for undelivered elements to recognize revenue separately for each of the different elements. Topic

606

requires the Company to allocate consideration to each separate different performance obligation through the use of stand-alone selling prices (“SSPs”) and to recognize the revenue as if those performance obligations had been sold on a standalone basis, either at a point-in-time or over time. The most significant impact of this change relates to the Company’s accounting for software license revenue. For the Company’s Exensio software that is licensed under a time-based license model, the Company will recognize a portion of revenue on these types of contracts at the time of delivery rather than ratably over the term of the license. For perpetual software license contracts, the Company will allocate consideration to the different performance obligations based on their SSPs rather than using the VSOE for undelivered elements as required under Topic

605.

Under the Company’s previous accounting practices, revenue was recognized from Gainshare performance incentive agreements in the period of receipt of related Gainshare acknowledgement reports, which was generally

one

quarter in arrears from the period in which the underlying sales (usage) occurred. Under Topic

606,

the Company is required to record Gainshare revenue in the same period in which the usage occurs. Because the Company generally does

not

Under Topic

605,

the Company recognized revenue for professional services, including revenue from fixed price solution implementation service contracts, either on a percentage-of-completion method or time-and-materials method. Under Topic

606,

revenue related to these professional services will remain substantially unchanged.

The following table summarizes the effects of adopting Topic

606

on the Company’s consolidated balance sheet as of

December 31, 2018:

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Accounts receivable, net of allowance	$	51,570		$	(979	)	$	50,591
Prepaid expenses and other current assets		9,562			(2,980	)		6,582
Deferred tax assets		19,044			443			19,487
Other non-current assets		6,972			(34	)		6,938
Deferred revenues – current portion		8,477			1,918			10,395
Long-term income taxes payable		3,751			(1,032	)		2,719
Other non-current liabilities		2,831			787			3,618
Accumulated deficit		(30,452	)		(5,223	)		(35,675	)

The Company’s net cash provided by operating activities for the year ended

December 31, 2018

did

not

change due to the adoption of Topic

606.

The following table summarizes the effects of adopting Topic

606

on the financial statement line items of the Company’s consolidated statement of cash flows for the year

December 31, 2018:

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Net loss	$	(7,716	)	$	(870	)	$	(8,586	)
Adjustments to reconcile loss to net cash provided by operating activities:
Deferred taxes		(4,171	)		(127	)		(4,298	)
Changes in operating assets and liabilities:
Accounts receivable		6,828			187			7,015
Prepaid expenses and other current assets		(2,115	)		588			(1,527	)
Other non-current assets		3,560			34			3,594
Deferred revenue		2,451			188			2,639

The Company derives revenue from

two

sources: Design-to-silicon-yield solutions and Gainshare performance incentives.

Revenue is recognized when control of products or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those promised products or services.

The Company determines revenue recognition through the following

five

steps:

	●	Identification of the performance obligations in the contract
	●	Determination of the transaction price
	●	Allocation of the transaction price to the performance obligations in the contract
	●	Recognition of revenue when, or as, performance obligations are satisfied

The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

The Company enters into contracts that can include various combinations of licenses, products and services, some of which are distinct and are accounted for as separate performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price of the contract to each performance obligation, generally on a relative basis using its standalone selling price. The Company does

not

adjust transaction price for the effects of a significant financing component when the period between the transfers of the promised good or service to the customer and payment for that good or service by the customer is expected to be

one

year or less. The Company assessed each of its revenue generating arrangements in order to determine whether a significant financing component exists, and determined its contracts do

not

include a significant financing component for the year ended

December 31, 2018.

Nature of Products and Services

Design-to-silicon-yield Solutions —The Company recognizes revenue for each element of Design-to-silicon-yield solutions as follows:

The Company generates a significant portion of its Design-to-silicon-yield solutions revenue from fixed-price solution implementation service contracts delivered over a specific period of time. Revenue under project–based contracts for solution implementation services is recognized as services are performed using a percentage-of-completion method based on costs or labor-hours inputs. Due to the nature of the work performed in these arrangements, the estimation of costs or hours at completion is complex, subject to many variables and requires significant judgment. Key factors reviewed by the Company to estimate costs to complete each contract are future labor and product costs and expected productivity efficiencies. If circumstances arise that change the original estimates of revenues, costs, or the extent of progress toward completion, revisions to the estimates are made. These revisions

may

result in increases or decreases in estimated revenues or costs. Losses on fixed-price solution implementation contracts are recognized in the period when they become probable. Revisions in profit estimates are reflected in the period in which the conditions that require the revisions become known and can be estimated (the cumulative catch-up method).

On occasion, the Company includes its products as a component of its fixed-price service contracts. In such instances, the Company determines whether the services performed and products included are distinct. In most cases, the arrangement is a single performance obligation and therefore, follows the pattern of transfer as the service is provided. The Company applies a measure of progress (typically hours-to-hours or cost-to-cost) to any fixed consideration. As a result, revenue is generally recognized over the period the services are performed using the percentage-of-completion method. This results in revenue recognition that corresponds with the value to the client of the services transferred to-date relative to the remaining services promised.

The Company also licenses our Design-for-Inspection ("DFI") system as a separate component of fixed-price service contracts. The Company allocates revenue to all deliverables based on their SSPs. In such instances, the Company applies judgment to estimate the range of SSPs for each performance obligation.

The Company licenses some of its software products separately from solution implementations, primarily its Exensio software platform and related products. The majority of these products are delivered as on-premise software licenses, while others can be delivered entirely or partially through Software-as-a-Service (SaaS) or cloud delivery models. Revenue from perpetual (

one

-time charge) license software is recognized at the time of the inception of the arrangement when control transfers to the client, if the software license is distinct from the services offered by the Company. Revenue from post-contract support subscription is recognized over the contract term on a straight-line basis, because the Company is providing (i) a service of standing ready to provide support, when-and-if needed, and (ii) unspecified software upgrades on a when-and-if available basis over the contract term. Revenue from time-based license software is allocated to each performance obligation and is recognized either at a point-in-time or over-time. The license component is recognized at the time of the delivery of the software license, with the post-contract support subscription component being recognized ratably over for the committed term of the contract. Revenue from software hosting or SaaS arrangements that allow for the use of a hosted software product or service over a contractually determined period of time without taking possession of software are accounted for as subscriptions and recognized as revenue ratably, on a straight-line basis, over the coverage period beginning on the date the service is made available to customers.

Gainshare Performance Incentives — Contracts to provide yield improvement services have historically included

two

components: (

) a fixed fee for performance by the Company of services delivered over a specific period of time; and (

) a Gainshare performance incentive component where the customer pays a variable fee, usually after the fixed fee period has ended, related to the usage of the Company's intellectual property. Revenue derived from Gainshare performance incentives is contingent upon the Company’s customers reaching certain defined production yield levels. Gainshare performance incentive periods are usually subsequent to the delivery of all contractual services and performance obligations. The Company records Gainshare revenue as a usage-based royalty based on customers' usage of intellectual property and records it in the same period in which the usage occurs.

The following table summarizes the effects of adopting Topic

606

on the financial statement line items of the Company’s consolidated statement of operations and comprehensive income (loss) for the year ended

December 31, 2018:

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Design-to-silicon-yield solutions	$	60,081		$	(711	)	$	59,370
Gainshare performance incentives		25,713			(470	)		25,243
Total revenue		85,794			(1,181	)		84,613
Gross profit		42,991			(1,181	)		41,810
Selling, general and administrative		23,934			(75	)		23,859
Total operating expenses		52,943			(75	)		52,868
Loss from operations		(9,952	)		(1,106	)		(11,058	)
Loss before taxes		(9,459	)		(1,106	)		(10,565	)
Income tax benefit		(1,743	)		(235	)		(1,978	)
Net loss	$	(7,716	)	$	(870	)	$	(8,586	)

Disaggregation of revenue

In accordance with ASC

606

50,

the Company disaggregates revenue from contracts with customers into geographical regions, major contract performance obligations, and timing of transfer of goods and services. The Company has determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

The following table shows the revenues from contracts with customers by the nature of transactions for the year ended

December 31, 2018 (

in thousands):

	Year Ended December 31, 2018
Licenses and Gainshare Performance Incentives	$	31,336
Support and services		53,486
Other		972
Total	$	85,794

Licenses and Gainshare Performance Incentives revenue is comprised of (i) the software license fees for perpetual and time-based software license contracts where the standalone selling prices are estimable by the Company, or distinct and separate performance obligations; and (ii) the variable fee component of the Company’s yield improvement service contracts, or Gainshare Performance Incentives, which is usually recognized as revenue subsequent to the delivery of all contractual services and performance obligations. The services component of such contracts, including recurring fees for unspecified software updates and technical support, is presented as support and services.

Under Topic

606,

the Company’s performance obligations are satisfied either at a point-in-time or over-time Revenue from performance obligations, satisfied over time and at a point-in-time, accounted for approximately

63%

and

37%

for the year ended

December 31, 2018,

respectively. International revenues accounted for approximately

60%,

61%

and

64%

of total revenues for the year ended

December 31, 2018,

2017

and

2016,

respectively. See Note

11,

Customer and Geographic Information.

Significant Judgments

More judgments and estimates are required under Topic

606

than were required under Topic

605.

Due to the complexity of certain contracts, the actual revenue recognition treatment required under Topic

606

for the Company’s arrangements

may

be dependent on contract-specific terms and

may

vary in some instances.

In services arrangements, the Company typically satisfies the performance obligation and recognizes revenue over time. In service arrangements, the performance obligation is satisfied over time either because the client controls the asset as it is created (e.g., when the asset is built at the customer site) or because the Company’s performance does

not

create an asset with an alternative use and the Company has an enforceable right to payment plus a reasonable profit for performance completed to-date. In most other services arrangements, the performance obligation is satisfied over time because the client simultaneously receives and consumes the benefits provided as the Company performs the services.

For revenue under project–based contracts for fixed-price solution implementation services, revenue is recognized as services are performed using the percentage-of-completion method based on costs or the labor-hours input method, whichever is the most appropriate measure of the progress towards completion of the contract. Due to the nature of the work performed in these arrangements, the estimation of percentage-of-completion is complex, subject to many variables and requires significant judgment. Key factors reviewed by the Company to estimate costs to complete each contract are future labor and product costs and expected productivity efficiencies. If circumstances arise that change the original estimates of revenues, costs, or extent of progress toward completion, revisions to the estimates are made. These revisions

may

result in increases or decreases in estimated revenues or costs, and such revisions are reflected in revenue on a cumulative catch-up basis in the period in which the circumstances that gave rise to the revision become known.

The Company is required to record Gainshare performance incentives revenue in the same period in which the usage occurs. Because the Company generally does

not

receive the acknowledgment reports during a given quarter within the time frame necessary to adequately review the reports and include the actual amounts in its quarterly results for such quarter, the Company accrues the related revenue based on estimates of customer's underlying sales achievement. The Company estimation process can be based on historical data, trends, seasonality, changes in the contract rate, knowledge of the changes in the industry, and changes in the customer’s manufacturing environment learned through discussions with customers and sales personnel. As a result of accruing revenue for the quarter based on such estimates, adjustments will be required in the following quarter to true-up revenue to the actual amounts reported.

Contract Balances

The Company performs its obligation under a contract with a customer by transferring products or services in exchange for consideration from the customer. The timing of the Company’s performance often differs from the timing of the customer’s payment, which results in the recognition of a receivable, a contract asset, or a contract liability. The Company classifies the right to consideration in exchange for products or services transferred to a client as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional as compared to a contract asset which is a right to consideration that is conditional upon factors other than the passage of time. The majority of the Company’s contract assets represent unbilled amounts related to fixed-price solution implementation service contracts when the costs or labor-hours input method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the client, and the right to consideration is subject to milestone completion or client acceptance. The contract assets are generally classified as current and are recorded on a net basis with deferred revenue (i.e. contract liabilities) at the contract level. The contract assets are included in prepaid expenses and other current assets in the consolidated balance sheets at beginning of

2018.

The contract assets that were recognized at the beginning of

2018

was

$1.9

million. The contract assets included in prepaid expenses and other current assets in the accompanying consolidated balance sheet was

$2.7

million as

December 31, 2018.

The change in the contract assets balance during the period relates to the recording of revenues for which the right to consideration is subject to milestone completion or client acceptance and movement of previously recorded contract assets to receivables as the right to consideration becomes unconditional. Deferred revenues consist substantially of amounts invoiced in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Deferred revenues that will be recognized during the succeeding

twelve

-month period is recorded as current deferred revenues and the remaining portion is recorded as non-current deferred revenues. This balance was recorded in the other non-current liabilities in the accompanying consolidated balance sheets. The non-current portion of deferred revenue was

$1.0

million and

$0.9

million, respectively, as of

December 31, 2018

and

January 1, 2018.

During the year ended

December 31, 2018,

the Company recognized

$6.3

million of revenue that was included in the total deferred revenue balance, as adjusted for Topic

606,

at the beginning of

2018.

December 31, 2018,

the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that were unsatisfied or partially unsatisfied was approximately

$47.1

million. Given the applicable contract terms, the majority of this amount is expected to be recognized as revenue over the next

two

years, with the remainder in the following

five

years. This amount does

not

include contracts to which the customer is

not

committed, nor contracts with original expected lengths of

one

year or less, nor contracts for which we recognize revenue equal to the amount we have the right to invoice for services performed, or future sales-based or usage-based royalty payments in exchange for a license of intellectual property. This amount is subject to change due to future revaluations of variable consideration, terminations, other contract modifications, or currency adjustments. The estimated timing of the recognition of remaining unsatisfied performance obligations is subject to change and is affected by changes to the scope, changes in timing of delivery of products and services, or contract modifications.

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within

days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined that its contracts generally do

not

include a significant financing component. The primary purpose of invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company’s products and services, and

not

to facilitate financing arrangements.

During the year ended

December 31, 2018,

the amount of revenue recognized from significant performance obligations satisfied (or partially satisfied) in previous periods was

$1.8

million. This amount primarily represents changes of estimated percentage-of–completion based contracts and changes in estimated Gainshare performance incentives for those customers that reported actual Gainshare revenue with some time lag.

Costs to obtain or fulfill a contract

The Company capitalizes the incremental costs to obtain or fulfill a contract with a customer, including direct sales commissions and related fees, when it expects to recover those costs. As a result, these costs will need to be capitalized and amortized over an appropriate period, which

may

exceed the initial contract term. The incremental costs of obtaining a contract are costs that would

not

have been incurred if the contract had

not

been obtained. The Company uses the portfolio method to recognize the amortization expense related to these capitalized costs related to initial contracts and renewals and such expense is recognized over the period associated with the revenue of the related portfolio. Total capitalized direct sales commission costs as of

December 31, 2018,

were

$0.5

million and the amortization of these assets were

$0.4

million for the year ended

December 31, 2018.

There was

impairment loss in relation to the costs capitalized for the periods presented. Certain eligible initial project costs are capitalized when the costs relate directly to the contract, the costs generate or enhance resources of the Company that will be used in satisfying the performance obligation in the future, and the costs are expected to be recovered. These costs primarily consist of transition and set-up costs related to the installation of systems and processes and other deferred fulfillment costs eligible for capitalization. Capitalized costs are amortized consistent with the transfer to the client of the services to which the asset relates and are recorded as a component of cost of revenues. The Company also incurred certain direct costs to provide solution implementation services in relation to the specific anticipated contracts. The Company recognizes such costs as a component of cost of revenues, the timing of which is dependent upon identification of a contract arrangement. The Company also defers costs from arrangements that required us to defer the revenues, typically due to the pattern of transfer of the performance obligations in the contract. These costs are recognized in proportion to the related revenue. At the end of the reporting period, the Company evaluates its deferred costs for their probable recoverability. The Company recognizes impairment of deferred costs when it is determined that the costs

longer have future benefits and are

longer recoverable. The deferred costs balance was

$0.2

million and

$0.6

million as of

December 31, 2018

and

December 31, 2017,

respectively. The balance was included in prepaid expenses and other current assets and other non-current assets in the accompanying consolidated balance sheets.

Note 3 - Property and Equipment

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment Disclosure [Text Block]

. PROPERTY AND EQUIPMENT

Property and equipment consist of (in thousands):

	December 31,
	2018			2017
Computer equipment	$	10,536		$	10,729
Software		4,112			3,348
Furniture, fixtures, and equipment		4,688			3,676
Leasehold improvements		5,474			1,980
Test equipment		14,697			13,796
Construction-in-progress		20,293			12,527
		59,800			46,056
Less: accumulated depreciation and amortization		(24,119	)		(20,670	)
Total	$	35,681		$	25,386

Test equipment includes DFI assets at customer sites that are contributing to DFI solution revenues. The construction-in-progress balance related to construction of DFI assets totaled

$17.4

million and

$10.9

million as of

December 31, 2018,

and

December 31, 2017,

respectively. Depreciation and amortization expense for years ended

December 31, 2018,

2017,

and

2016

was

$5.0

million,

$4.8

million and

$3.6

million, respectively.

Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Text Block]

. GOODWILL AND INTANGIBLE ASSETS

As of

December 31, 2018

and

2017,

the carrying amount of goodwill was

$1.9

million.

Intangible assets balance was

$5.1

million and

$6.1

million as of

December 31, 2018,

and

December 31, 2017,

respectively. Intangible assets as of

December 31, 2018

and

2017,

consist of the following (in thousands):

				December 31, 2018							December 31, 2017
	Amortization			Gross					Net		Gross					Net
	Period			Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
(Dollars in thousands)	(Years)			Amount		Amortization			Amount		Amount		Amortization			Amount
Customer relationships	1	-	9	$	6,740	$	(4,514	)	$	2,226	$	6,740	$	(4,145	)	$	2,595
Developed technology	4	-	9		15,820		(13,404	)		2,416		15,820		(12,829	)		2,991
Tradename	2	-	7		790		(648	)		142		790		(622	)		168
Patent	7	-	10		1,800		(1,520	)		280		1,800		(1,480	)		320
Total				$	25,150	$	(20,086	)	$	5,064	$	25,150	$	(19,076	)	$	6,074

The weighted average amortization period for acquired identifiable intangible assets was

5.9

years as of

December 31, 2018.

Intangible asset amortization expense for years ended

December 31, 2018,

2017,

and

2016

was

$1.0

million,

$0.9

million and

$0.8

million, respectively. The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands):

Year Ending December 31,
2019	$	1,009
2020		1,009
2021		833
2022		626
2023		626
2024 and thereafter		961
Total future amortization expense	$	5,064

Intangible assets are amortized over their useful lives unless these lives are determined to be indefinite. Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group

may

not

be recoverable. During year ended

December 31, 2018,

there were

indicators of impairment related to the Company’s intangible assets.

Note 5 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments and Contingencies Disclosure [Text Block]

. COMMITMENTS AND CONTINGENCIES

Leases

The Company leases administrative and sales offices and certain equipment under noncancelable operating leases, which contain various renewal options and, in some cases, require payment of common area costs, taxes and utilities. These operating leases expire at various times through

2028.

Rent expense was

$2.5

million,

$2.3

million and

$2.2

million in

2018,

2017,

and

2016,

respectively.

Future minimum lease payments under noncancelable operating leases at

December 31, 2018,

are as follows (in thousands):

Year Ending December 31,
2019	$	1,677
2020		1,811
2021		1,653
2022		1,484
2023		1,127
2024 and thereafter		3,673
Total future minimum lease payments	$	11,425

Indemnification

The Company generally provides a warranty to its customers that its software will perform substantially in accordance with documented specifications typically for a period of

days following delivery of its products. The Company also indemnifies certain customers from

third

-party claims of intellectual property infringement relating to the use of its products. Historically, costs related to these guarantees have

not

been significant. The Company is unable to estimate the maximum potential impact of these guarantees on its future results of operations.

Purchase obligations

The Company has purchase obligations with certain suppliers for the purchase of goods and services entered in the ordinary course of business. As of

December 31, 2018,

total outstanding purchase obligations were

$8.7

million, which are primarily due within the next

months.

Indemnification of Officers and Directors

As permitted by the Delaware general corporation law, the Company has included a provision in its certificate of incorporation to eliminate the personal liability of its officers and directors for monetary damages for breach or alleged breach of their fiduciary duties as officers or directors, other than in cases of fraud or other willful misconduct.

In addition, the Bylaws of the Company provide that the Company is required to indemnify its officers and directors even when indemnification would otherwise be discretionary, and the Company is required to advance expenses to its officers and directors as incurred in connection with proceedings against them for which they

may

be indemnified. The Company has entered into indemnification agreements with its officers and directors containing provisions that are in some respects broader than the specific indemnification provisions contained in the Delaware general corporation law. The indemnification agreements require the Company to indemnify its officers and directors against liabilities that

may

arise by reason of their status or service as officers and directors other than for liabilities arising from willful misconduct of a culpable nature, to advance their expenses incurred as a result of any proceeding against them as to which they could be indemnified, and to obtain directors’ and officers’ insurance if available on reasonable terms. The Company has obtained directors’ and officers’ liability insurance in amounts comparable to other companies of the Company’s size and in the Company’s industry. Since a maximum obligation of the Company is

not

explicitly stated in the Company’s Bylaws or in its indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated.

Litigation

December 31, 2018,

the Company was

not

party to any material legal proceedings, thus

loss was probable and

amount was accrued.

Note 6 - Stockholders' Equity	12 Months Ended
Note 6 - Stockholders' Equity	Dec. 31, 2018
Notes to Financial Statements
Shareholders' Equity and Share-based Payments [Text Block]	6 . STOCKHOLDERS’ EQUITY Stock Repurchase Program On October 25, 2016, the Board of Directors adopted a program that was effective immediately to repurchase up to $25.0 million of the Company’s common stock both on the open market and in privately negotiated transactions over the next two years. On May 29, 2018, the Board of Directors terminated that 2016 stock repurchase program, and adopted a new program to repurchase up to $25.0 million of the Company’s common stock both on the open market and in privately negotiated transactions, from time to time, over the next two years. During the year ended December 31, 2018, the Company repurchased 437,000 shares for $5.2 million under the 2016 program and no shares were repurchased under the 2018 program. As of December 31, 2018, the Company had repurchased 1,279,000 shares at an average price of $14.59 per share under the 2016 program, for a total purchase of $18.7 million. Under the 2018 program, as of December 31, 2018, $25.0 million of the Company’s common stock remained available for future repurchases.

Note 7 - Employee Benefit Plans

12 Months Ended

Dec. 31, 2018

Compensation and Employee Benefit Plans [Text Block]

. EMPLOYEE BENEFIT PLANS

Employee Stock Purchase Plan

July 2001,

the Company adopted a

ten

-year Employee Stock Purchase Plan (“ESPP”) under which eligible employees can contribute up to

10%

of their compensation, as defined in the ESPP, towards the purchase of shares of PDF common stock at a price of

85%

of the lower of the fair market value at the beginning of the offering period or the end of the purchase period. The ESPP consists of

twenty-four

-month offering periods with

four six

-month purchase periods in each offering period. Under the ESPP, on

January 1

of each year, starting with

2002,

the number of shares reserved for issuance will automatically increase by the lesser of (

)

675,000

shares, (

)

of the Company’s outstanding common stock on the last day of the immediately preceding year, or (

) the number of shares determined by the board of directors. At the annual meeting of stockholders on

May 18, 2010,

the Company's stockholders approved an amendment to the ESPP to extend it through

May 17, 2020.

As of

December 31, 2018,

8,734,000

shares of the Company’s common stock have been reserved for issuance under the ESPP. During

2018,

2017,

and

2016,

the number of shares issued were

201,000,

200,000,

and

173,000,

respectively, at a weighted average price of

$9.12,

$9.33,

and

$9.00

per share, respectively. As of

December 31, 2018,

4,738,000

shares were available for future issuance under the ESPP. The weighted average estimated fair value of shares granted under the ESPP during

2018,

2017,

and

2016

was

$3.62,

$5.22,

and

$3.69

per share, respectively. As of

December 31, 2018,

there was

$1.5

million of unrecognized compensation cost related to the ESPP. That cost is expected to be recognized over a weighted average period of

1.58

years.

Stock Incentive Plans

November 16, 2011,

the Company’s stockholders approved the

2011

Stock Incentive Plan (as amended, the

“2011

Plan”). Under the

2011

Plan, the Company

may

award stock options, stock appreciation rights, stock grants or stock units covering shares of the Company’s common stock to employees, directors, non-employee directors and contractors. The aggregate number of shares reserved for awards under this plan is

9,050,000

shares, plus up to

3,500,000

shares previously issued under the

2001

Plan that are forfeited or repurchased by the Company or shares subject to awards previously issued under the

2001

Plan that expire or that terminate without having been exercised or settled in full on or after

November 16, 2011.

In case of awards other than options or stock appreciation rights, the aggregate number of shares reserved under the plan will be decreased at a rate of

1.33

shares issued pursuant to such awards. The exercise price for stock options must generally be at prices

less than the fair market value at the date of grant. Stock options generally expire

ten

years from the date of grant and become vested and exercisable over a

four

-year period.

2001,

the Company adopted a

2001

Stock Plan (the

“2001

Plan”). In

2003,

in connection with its acquisition of IDS Systems Inc., the Company assumed IDS’

2001

Stock Option / Stock Issuance Plan (the “IDS Plan”). Both of the

2001

and the IDS Plans expired in

2011.

Stock options granted under the

2001

and IDS Plans generally expire

ten

years from the date of grant and become vested and exercisable over a

four

-year period. Although

new awards

may

be granted under the

2001

or IDS Plans, awards made under the

2001

and IDS Plans that are currently outstanding remain subject to the terms of each such plan.

As of

December 31, 2018,

9.6

million shares of common stock were reserved to cover stock-based awards under the

2011

Plan, of which

3.0

million shares were available for future grant. The number of shares reserved and available under the

2011

Plan includes

0.5

million shares that were subject to awards previously made under the

2001

Plan and were forfeited, expired or repurchased by the Company after adoption of the

2011

Plan through

December 31, 2018.

As of

December 31, 2018,

there were

outstanding awards that had been granted outside of the

2011,

2001

or the IDS Plans (collectively, the "Stock Plans").

The Company has elected to use the Black-Scholes-Merton option-pricing model, which incorporates various assumptions including volatility, expected life, interest rate and expected dividend. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options. The expected life of an award is based on historical experience and on the terms and conditions of the stock awards granted to employees. The interest rate assumption is based upon observed Treasury yield curve rates appropriate for the expected life of the Company’s stock options.

The fair value of equity awards granted was estimated on the date of grant with the following weighted average assumptions:

	Stock Plans									Employee Stock Purchase Plan
	2018			2017			2016			2018			2017			2016
Expected life (in years)		4.43			4.42			4.40			1.25			1.25			1.25
Volatility		43.91	%		41.5	%		43.2	%		42.85	%		40.63	%		44.0	%
Risk-free interest rate		2.73	%		1.81	%		1.34	%		2.48	%		1.25	%		0.50	%
Expected dividend		—			—			—			—			—			—

Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally

four

years. As stock-based compensation expense recognized is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Stock-based compensation expenses related to the Company’s stock plans and employee stock purchase plan were allocated as follows (in thousands):

	Years Ended December 31,
	2018		2017		2016
Costs of Design-to-silicon-yield solutions	$	3,554	$	4,606	$	4,427
Research and development		3,260		3,518		3,087
Selling, general and administrative		3,481		3,686		3,488
Stock-based compensation expenses	$	10,295	$	11,810	$	11,002

The stock-based compensation expense for the years ended

December 31, 2018,

2017,

and

2016

in the table above includes expense related to cash-settled stock appreciation rights (“SARs”) granted to certain employees which totaled to a credit of

$24,000,

a credit of

$30,000,

and an expense of

$116,000,

respectively. The Company accounted for these awards as liability and the amount was included in accrued compensation and related benefits.

Additional information with respect to options under the Plans is as follows:

	Outstanding Options
	Number of Options (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding, January 1, 2016		1,764		$	7.88
Granted (weighted average fair value of $5.36 per share)		99		$	14.55
Exercised		(393	)	$	7.56
Canceled		(31	)	$	13.82
Expired		(75	)	$	13.80
Outstanding, December 31, 2016		1,364		$	8.00
Granted (weighted average fair value of $5.92 per share)		150		$	16.28
Exercised		(440	)	$	6.42
Canceled		(25	)	$	15.03
Expired		(4	)	$	16.46
Outstanding, December 31, 2017		1,045		$	9.65
Granted (weighted average fair value of $4.08 per share)		116		$	10.35
Exercised		(81	)	$	6.93
Canceled		(30	)	$	13.41
Expired		(23	)	$	13.16
Outstanding, December 31, 2018		1,027		$	9.75		4.35	$	1,121
Vested and expected to vest, December 31, 2018		1,006		$	9.68		4.25	$	1,121
Exercisable, December 31, 2018		796		$	8.69		3.05	$	1,121

The aggregate intrinsic value in the table above represents the total intrinsic value based on the Company’s closing stock price of

$8.43

as of

December 31, 2018,

which would have been received by the option holders had all option holders exercised their options as of that date. The total intrinsic value of options exercised during the years ended

December 31, 2018,

2017,

and

2016

was

$0.4

million,

$5.3

million, and

$4.4

million, respectively.

As of

December 31, 2018,

there was

$1.0

million of total unrecognized compensation cost, net of forfeitures, related to unvested stock options. That cost is expected to be recognized over a weighted average period of

3.06

years. The total fair value of options vested during the year ended

December 31, 2018,

was

$0.4

million.

Nonvested shares (restricted stock units) were as follows:

	Shares (in thousands)			Fair Value
Nonvested, January 1, 2016		1,166		$	17.03
Granted		963		$	14.41
Vested		(472	)	$	17.00
Forfeited		(115	)	$	15.73
Nonvested, December 31, 2016		1,542		$	15.50
Granted		849		$	16.43
Vested		(646	)	$	16.26
Forfeited		(128	)	$	15.71
Nonvested, December 31, 2017		1,617		$	15.66
Granted		983		$	8.66
Vested		(596	)	$	15.84
Forfeited		(169	)	$	14.83
Nonvested, December 31, 2018		1,835		$	11.93

As of

December 31, 2018,

there was

$17.6

million of total unrecognized compensation cost related to restricted stock rights. That cost is expected to be recognized over a weighted average period of

2.8

years. Restricted stock units do

not

have rights to dividends prior to vesting.

401

(k)

Savings

Plan

1999,

the Company established a

401

(k) tax-deferred savings plan, whereby eligible employees

may

contribute up to

15%

of their eligible compensation with a maximum amount subject to IRS guidelines in any calendar year. Company contributions to this plan are discretionary;

such Company contributions have been made since the inception of this plan.

Note 8 - Restructuring Charges	12 Months Ended
Note 8 - Restructuring Charges	Dec. 31, 2018
Notes to Financial Statements
Restructuring and Related Activities Disclosure [Text Block]	8 . RESTRUCTURING CHARGES On September 27, 2018, the Board of Directors of the Company approved a reduction in its workforce to reduce expenses and align its operations with evolving business needs. Notifications to the affected employees began on October 24, 2018. In the fourth quarter of 2018, the Company recorded charges of $576,000 for employee separation charges, all of which were recorded as operating expenses in the consolidated statement of operations and comprehensive income (loss) for the year ended December 31, 2018. Of the $576,000 for employee separation charges, the Company paid $332,000 during the fourth quarter of 2018 and cash payments for the remaining restructuring liabilities of $244,000 as of December 31, 2018 are expected to be made in fiscal 2019. The Company is in the process of implementing the restructuring plan and the remaining charges expected to be incurred could be significant.

Note 9 - Income Taxes

12 Months Ended

Dec. 31, 2018

Income Tax Disclosure [Text Block]

INCOME TAXES

December 22, 2017,

the

2017

Tax Cuts and Jobs Act (TCJA) was enacted into law and the new legislation contains several key tax provisions that affected the Company, including a

one

-time mandatory transition tax on accumulated foreign earnings and a reduction of the corporate income tax rate from

35%

21%

effective

January 1, 2018,

among others. The Company is required to recognize the effect of the tax law changes in the period of enactment, such as determining the transition tax, remeasuring its U.S. deferred tax assets and liabilities as well as reassessing the net realizability of its deferred tax assets and liabilities. In

December 2017,

the SEC staff issued Staff Accounting Bulletin

No.

118,

Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB

118

), which allowed the Company to record provisional amounts during a measurement period

not

to extend beyond

one

year of the enactment date. As a result, the Company previously provided a provisional estimate of the effect of the TCJA in its financial statements. In the

fourth

quarter of

2018,

the Company completed its analysis to determine the effect of the TCJA and recorded immaterial adjustments as of

December 31, 2018.

Effective

January 1, 2018,

the TCJA created a new requirement to include in U.S. income global intangible low-taxed income (“GILTI”) earned by controlled foreign corporations (“CFCs”). The GILTI must be included currently in the gross income of the CFCs’ U.S. shareholder. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (

) treating taxes due on future U.S. inclusions related to GILTI as a current-period expense when incurred (the “period cost method”) or (

) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). During the

first

quarter of

2018,

the Company selected the period cost method in recording the tax effects of GILTI in its financial statements.

The Company has

not

provided for any foreign withholding tax for any undistributed earnings for its foreign subsidiaries as of

December 31, 2018.

The Company intends to permanently reinvest the foreign earnings outside of the U.S.

	Year Ended December 31,
	201 8			201 7			2016
	(In thousands)
U.S.
Current	$	(84	)	$	(141	)	$	410
Deferred		(4,171	)		(471	)		208
Foreign
Current		347			254			329
Withholding		2,165			1,654			2,898
Deferred		—			(33	)		8
Total provision (benefit)	$	(1,743	)	$	1,263		$	3,853

During the years ended

December 31, 2018,

2017

and

2016,

income (loss) before taxes from U.S. operations was $(

11.1

) million, $(

1.2

) million and

$11.3

million, respectively, and income before taxes from foreign operations was

$1.6

million,

$1.1

million and

$1.6

million, respectively.

The income tax provision (benefit) differs from the amount estimated by applying the statutory federal income tax rate (

21%

for

2018,

and

35%

for

2017

and

2016

) for the following reasons (in thousands):

	Year Ended December 31,
	201 8			2017			201 6
Federal statutory tax provision	$	(1,986	)	$	(26	)	$	4,534
State tax provision		(133	)		(110	)		283
Stock compensation expense		768			(944	)		45
Tax credits		(2,682	)		(2,769	)		(4,000	)
Foreign tax, net		2,104			1,641			2,852
Tax law changes		—			3,247			—
Other		186			224			139
Tax provision (benefit)	$	(1,743	)	$	1,263		$	3,853

As of

December 31, 2018,

the Company had Federal and California net operating loss carry-forwards (“NOLs”) of approximately

$9.9

million and

$5.9

million, respectively. The Federal and California NOLs begin expiring after

2019

and

2028,

respectively.

As of

December 31, 2018,

the Company had federal and state research and experimental and other tax credit (“R&D credits”) carry-forwards of approximately

$13.6

million and

$17.7

million, respectively. The federal credits begin to expire after

2025,

while the California credits have

expiration. The extent to which the federal and state credit carry forwards can be used to offset future tax liabilities, respectively,

may

be limited, depending on the extent of ownership changes within any

three

-year period as provided in the Tax Reform Act of

1986

and the California Conformity Act of

1987.

The Company assesses its deferred tax assets for recoverability on a regular basis, and where applicable, a valuation allowance is recorded to reduce the total deferred tax asset to an amount that will, more likely than

not,

be realized in the future. As of

December 31, 2018

and

2017,

the Company believes that most of its deferred tax assets are “more-likely-than

not”

to be realized with the exception of California R&D tax credits that have

not

met the “more-likely-than

not”

realization threshold criteria because on an annual basis and pursuant to current law, the Company generates more California credits than California tax. As a result, at

December 31, 2018

and

2017,

the excess credits of

$9.7

million and

$9.0

million, respectively continued to be subject to a full valuation allowance. In addition, the Company had approximately

$0.1

million of California NOL carryforward from its acquisition of Syntricity. The Company evaluated positive and negative evidence and concluded that it was more likely than

not

that the California NOL would

not

be fully realizable. As a result of management’s evaluation, the Company recorded full valuation allowance against its deferred tax assets related to its California NOL. The Company will continue to review its deferred tax assets in accordance with the applicable accounting standards. Net deferred tax assets balance as of

December 31, 2018

and

2017

was

$18.3

million and

$15.5

million, respectively.

The components of the net deferred tax assets are comprised of (in thousands):

	December 31,
	201 8			201 7
Deferred tax assets

Net operating loss carry forward	$	2,720		$	1,318
Research and development and other credit carry forward		17,750			16,626
Foreign tax credit carry forward		3,994			1,754
Accruals deductible in different periods		2,198			3,285
Intangible assets		1,081			1,325
Stock-based compensation		1,109			1,166
Valuation allowance		(9,808	)		(9,126	)
Subtotal	$	19,044		$	16,348

Deferred tax liabilities

Fixed assets		(710	)		(835	)
Net deferred tax assets	$	18,334		$	15,513

In accordance with the accounting standard relating to accounting for uncertain tax positions, the Company classifies its liabilities for income tax exposures as long-term. The Company includes interest and penalties related to unrecognized tax benefits within the Company’s income tax provision. As of

December 31, 2018

and

2017,

the Company had accrued interest and penalties related to unrecognized tax benefits of

$0.8

million and

$0.7

million, respectively. In the years ended

December 31, 2018,

2017,

and

2016,

the Company recognized charges for interest and penalties related to unrecognized tax benefits of

$84,000,

$135,000,

and

$72,000,

respectively, in the consolidated statements of operations and comprehensive income (loss).

The Company’s total amount of unrecognized tax benefits, excluding interest and penalties, as of

December 31, 2018

was

$13.3

million, of which

$7.8

million, if recognized, would impact the Company’s effective tax rate. As of

December 31, 2018,

the Company has recorded unrecognized tax benefits of

$3.0

million, including interest and penalties of

$0.8

million, as long-term income taxes payable in its consolidated balance sheet. The remaining

$10.3

million has been recorded net of our deferred tax assets, of which

$5.5

million is subject to a full valuation allowance. The Company does

not

expect the change in unrecognized tax benefits over the next

twelve

months to materially impact its results of operations and financial position.

The Company conducts business globally and, as a result, files numerous consolidated and separate income tax returns in the U.S. federal, various state and foreign jurisdictions. Because the Company used some of the tax attributes carried forward from previous years to tax years that are still open, statutes of limitation remain open for all tax years to the extent of the attributes carried forward into tax year

2002

for federal and California tax purposes. The Company is

not

subject to income tax examinations in any other of its major foreign subsidiaries’ jurisdictions.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	Amount
Gross unrecognized tax benefits, January 1, 2016	$	10,979
Increases in tax positions for current year		1,118
Increase in tax positions for prior years		112
Lapse in statute of limitations		(269	)
Gross unrecognized tax benefits, December 31, 2016		11,940
Increases in tax positions for current year		1,166
Increases in tax positions for prior years		—
Lapse in statute of limitations		(217	)
Gross unrecognized tax benefits, December 31, 2017		12,889
Increases in tax positions for current year		664
Increases in tax positions for prior years		—
Lapse in statute of limitations		(261	)
Gross unrecognized tax benefits, December 31, 2018	$	13,292

We do

not

provide deferred taxes on undistributed earnings of our foreign subsidiaries as we intend to indefinitely reinvest those earnings.

Valuation allowance for deferred tax assets is summarized:

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions/ Write-offs of Accounts		Balance at End of Period
Valuation allowance for deferred tax assets
2018	$	9,126	$	682	$	—	$	9,808
2017	$	6,798	$	2,328	$	—	$	9,126
2016	$	6,205	$	593	$	—	$	6,798

Note 10 - Net Income Per Share

12 Months Ended

Dec. 31, 2018

Earnings Per Share [Text Block]

. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands except per share amount):

	Year Ended December 31,
	2018			2017			2016
Numerator:
Net income (loss)	$	(7,716	)	$	(1,337	)	$	9,103
Denominator:
Basic weighted-average shares outstanding		32,169			32,038			31,373
Effect of dilutive options and restricted stock		—			—			1,058
Diluted weighted-average shares outstanding		32,169			32,038			32,431

Net income (loss) per share – Basic	$	(0.24	)	$	(0.04	)	$	0.29
Net income (loss) per share – Diluted	$	(0.24	)	$	(0.04	)	$	0.28

For the years ended

December 31, 2018

and

2017,

because the Company was in a loss position, basic net loss per share is the same as diluted net loss per share as the inclusion of the potential common shares would have been anti-dilutive.

The following table sets forth potential shares of common stock that are

not

included in the diluted net income (loss) per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands):

	Years Ended December 31,
	2018		2017		2016
Outstanding options		669		751		134
Nonvested shares of restricted stock units		1,060		411		18
Employee Stock Purchase Plan		237		214		121
Total		1,966		1,376		273

Note 11 - Customer and Geographic Information

12 Months Ended

Dec. 31, 2018

Segment Reporting Disclosure [Text Block]

. CUSTOMER AND GEOGRAPHIC INFORMATION

Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or group, in deciding how to allocate resources and in assessing performance.

The Company’s chief operating decision maker, the chief executive officer, reviews discrete financial information presented on a consolidated basis for purposes of regularly making operating decisions, allocation of resources, and assessing financial performance. Accordingly the Company considers itself to be in

one

operating and reporting segment, specifically the licensing and implementation of yield improvement solutions for integrated circuit manufacturers.

The Company had revenues from individual customers in excess of

10%

of total revenues as follows:

	Year Ended December 31,
Customer	2018			2017			2016
A		37	%		40	%		41	%
B		*			*	%		11	%

* represents less than

10%

The Company had accounts receivable balances (including amounts that are unbilled) from individual customers in excess of

10%

of the gross accounts receivable balance as follows:

	December 31,
Customer	2018			2017
A		35	%		41	%
C		21	%		15	%

Revenues from customers by geographic area based on the location of the customers’ work sites are as follows (in thousands):

	Year Ended December 31,
	2018					2017					2016
	Revenues		Percentage of Revenues			Revenues		Percentage of Revenues			Revenues		Percentage of Revenues
United States	$	34,179		40	%	$	39,631		39	%	$	38,748		36	%
China		17,465		20			17,872		18			11,436		11
Taiwan		7,890		9			12,494		12			15,216		14
Germany		5,324		6			9,990		10			17,253		16
Rest of the world		20,936		25			21,884		21			24,808		23
Total revenue	$	85,794		100	%	$	101,871		100	%	$	107,461		100	%

Long-lived assets, net by geographic area is as follows (in thousands):

	December 31,
	201 8		201 7
United States	$	35,173	$	24,883
Rest of the world		508		503
Total long-lived assets, net	$	35,681	$	25,386

Note 12 - Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Text Block]

. FINANCIAL INSTRUMENTS

Fair value is the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. The multiple assumptions used to value financial instruments are referred to as inputs, and a hierarchy for inputs used in measuring fair value is established, that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. These inputs are ranked according to a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into

three

broad levels.

Level

Inputs are quoted prices in active markets for identical assets or liabilities.

Level

Inputs are quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are

not

active, inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data.

Level

Inputs are derived from valuation techniques in which

one

or more significant inputs or value drivers are unobservable.

The following table represents the Company’s assets measured at fair value on a recurring basis as of

December 31, 2018,

and the basis for that measurement (in thousands):

Assets		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Money market mutual funds		$	27,068			$	27,068			$	—			$	—

The following table represents the Company’s assets measured at fair value on a recurring basis as of

December 31, 2017

and the basis for that measurement (in thousands):

Assets		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Money market mutual funds		$	26,638			$	26,638			$	—			$	—

The Company enters into foreign currency forward contracts to reduce the exposure to foreign currency exchange rate fluctuations on certain foreign currency denominated monetary assets and liabilities, primarily on

third

-party accounts payables and intercompany balances. The primary objective of the Company’s hedging program is to reduce volatility of earnings related to foreign currency exchange rate fluctuations. The counterparty to these foreign currency forward contracts is a large global financial institution that the Company believes is creditworthy, and therefore, the Company believes the credit risk of counterparty nonperformance is

not

significant. These foreign currency forward contracts are

not

designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded into earnings as a component of other income (expense), net, and offsets the change in fair value of the foreign currency denominated assets and liabilities, which is also recorded in other income (expense), net. For the years ended

December 31, 2018,

2017,

and

2016,

the Company recognized a realized loss of

$0.7

million, a realized gain of

$0.7

million, and a realized loss of

$0.4

million, respectively on the contracts, which is recorded in interest and other income (expense), net in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company carries these derivatives financial instruments on its Consolidated Balance Sheets at their fair values. The Company’s foreign currency forward contracts are classified as Level

because it is

not

actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments. As of

December 31, 2018,

the Company had

one

outstanding forward contract with a notional amount of

$8.2

million and recorded

$55,000

in other current liability associated with this outstanding forward contract.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 13 - Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information [Text Block]

. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of the Company’s quarterly consolidated results of operations (unaudited) for the fiscal years ended

December 31, 2018

and

2017.

	Year Ended December 31, 2018
	Q1			Q2			Q3			Q4
	(In thousands, except for per share amounts)
Total revenues	$	24,737		$	21,119		$	20,213		$	19,725
Gross profit	$	13,255		$	10,202		$	9,530		$	10,004
Net loss	$	(424	)	$	(2,096	)	$	(2,082	)	$	(3,114	)
Net loss per share:
Basic	$	(0.01	)	$	(0.07	)	$	(0.06	)	$	(0.10	)
Diluted	$	(0.01	)	$	(0.07	)	$	(0.06	)	$	(0.10	)

	Year Ended December 31, 2017
	Q1		Q2		Q3		Q4
	(In thousands, except for per share amounts)
Total revenues	$	24,289	$	24,289	$	26,517	$	26,776
Gross profit	$	12,858	$	12,910	$	14,086	$	14,495
Net income (loss)	$	517	$	189	$	590	$	(2,634	)
Net income (loss) per share:
Basic	$	0.02	$	0.01	$	0.02	$	(0.08	)
Diluted	$	0.02	$	0.01	$	0.02	$	(0.08	)

Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries after the elimination of all significant intercompany balances and transactions.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risk

The Company primarily sells its technologies and services to companies in Asia, Europe and North America within the semiconductor industry. As of

December

31,

2018,

two

customers accounted for

56%

of the Company’s gross accounts receivable and

one

customer accounted for

37%

of the Company’s revenues for

2018.

As of

December

31,

2017,

two

customers accounted for

56%

of the Company’s gross accounts receivable and

one

customer accounted for

40%

of the Company’s revenues for

2017.

See Note

for further details. The Company does

not

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash, Cash Equivalents and Short-term Investments

The Company considers all highly liquid investments with an original maturity of

days or less to be cash equivalents. Investments with original maturities greater than

three

months and less than

one

year are classified as short-term investments.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment

Property and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives (in years) of the related asset as follows:

Computer equipment		3
Software		3
Furniture, fixtures, equipment and test equipment	3	-	10
Leasehold improvements	Shorter of estimated useful life or term of lease

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Long-lived Assets

The Company’s long-lived assets, excluding goodwill, consist of property and equipment and intangible assets. The Company periodically reviews its long-lived assets for impairment

For assets to be held and used, the Company initiates its review whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset group

may

not

recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset group exceeds its fair value.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

fourth

not

reduce the fair value of a reporting unit below its carrying amount, including goodwill. If events or circumstances do

not

indicate that the fair value of a reporting unit is below its carrying amount, goodwill is

not

considered to be impaired and

further testing is required. If further testing is required, the Company performs a

two

-step process. The

first

step involves comparing the fair value of its reporting unit to its carrying value, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the

second

one

reporting unit. There has been

impairment of goodwill for any periods presented.

Receivables, Policy [Policy Text Block]

Accounts Receivable

Accounts receivable include amounts that are unbilled at the end of the period that are expected to be billed and collected within

-month period. Unbilled accounts receivable is determined on an individual contract basis. Unbilled accounts receivable, included in accounts receivable, totaled

$22.2

million as of

December 31, 2018

and

2017.

Unbilled accounts receivable that are

not

expected to be billed and collected during the succeeding

-month period are recorded in other non-current assets and totaled

$5.3

million and

$8.6

million as of

December 31, 2018

and

2017,

Allowance for doubtful accounts are summarized below (in thousands):

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions/ Write-offs of Accounts		Balance at End of Period
Allowance for doubtful accounts
2018	$	374	$	—	$	42	$	332
2017	$	200	$	174	$	—	$	374
2016	$	299	$	—	$	99	$	200

Research, Development, and Computer Software, Policy [Policy Text Block]

Software Development Costs

six

years. The costs to develop software that is marketed externally have

not

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation

Stock-based compensation is estimated at the grant date based on the award’s fair value and is recognized on a straight-line basis over the vesting periods, generally

four

Income Tax, Policy [Policy Text Block]

Income Taxes

not

anticipated. Valuation allowances are provided to reduce deferred tax assets to an amount that in management’s judgment is more likely than

not

to be recoverable against future taxable income.

not

to be sustained. An uncertain income tax position will

not

be recognized if it has less than a

50%

Earnings Per Share, Policy [Policy Text Block]

Net Income

(Loss)

Per Share

dilutive potential common shares are included in the computation of any diluted per share amount when a loss from continuing operations was reported by the Company.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Derivatives, Policy [Policy Text Block]

Derivative Financial Instruments

not

significant. These foreign currency forward contracts are

not

two

three

months.

Legal Costs, Policy [Policy Text Block]

Litigation

December 31, 2018,

the Company is

not

a party to any material legal proceedings, thus

loss was probable and

amount was accrued.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting

Pronouncements

May 2014,

the FASB issued Accounting Standards Update (“ASU”)

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

), which supersedes the revenue recognition requirements in Revenue Recognition (Topic

605

606,

the new revenue recognition standard provides a

five

first

day of the

first

fiscal quarter of fiscal

2018.

The Company chose to adopt the standard using the modified retrospective transition method. See Revenue Recognition, in Note

for further information, including further discussion on the impact of adoption and changes in accounting policies relating to revenue recognition.

August 2016,

the FASB issued ASU

No.

2016

15,

Statement of Cash Flows (Topic

230

December 15, 2017,

and interim periods within those fiscal years. The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

November 2016,

the FASB issued ASU

No.

2016

18,

Statement of Cash Flows (Topic

230

December 15, 2017,

and interim periods within those fiscal years. The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

January 2017,

the FASB issued ASU

No.

2017

01,

December 15, 2017.

The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

May 2017,

the FASB issued ASU

No.

2017

09,

Compensation-Stock Compensation (Topic

718

) Scope of Modification Accounting. This standard clarifies which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

The standard is effective for interim and annual reporting periods beginning after

December 15, 2017.

The Company adopted this standard on

January 1, 2018,

and it did

not

have a material impact on its financial statements and footnote disclosures.

March 2018,

the FASB issued ASU

No.

2018

05,

Income Taxes (Topic

740

): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin

No.

118.

The staff of the SEC recognized the complexity of reflecting the impacts of the Tax Cuts and Job Act (“TCJA”), and on

December 22, 2017,

issued guidance in Staff Accounting Bulletin

118

(SAB

118

), which clarifies accounting for income taxes under Accounting Standards Codification (ASC)

740

if information is

not

yet available or complete and provides for up to a

one

-year period in which to complete the required analysis and accounting (the measurement period). The Company accounted for the tax effects of the TCJA under the guidance of SAB

118,

on a provisional basis as of

December 31, 2017

and through the

first

three

quarters of

2018.

The accounting for TCJA was completed as of

December 31, 2018.

Refer to Note

Income Taxes, for further discussion regarding the impact of this standard to the Company's consolidated financial statements.

Recent

Accounting Standards

or Updates

Not

Yet Effective

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

December 15, 2018,

including interim periods within those fiscal years. In

July 2018,

the FASB issued ASU

No.

2018

- Leases (Topic

842

): Targeted Improvements (ASU

No.

2018

). Prior to ASU

No.

2018

11,

No.

2018

allows entities an additional transition method to the existing requirements whereby an entity could adopt the provisions of ASU

No.

2016

by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without adjustment to the financial statements for periods prior to adoption. In

December 2018,

the FASB issued ASU

No.

2018

20,

Leases (Topic

842

): Narrow-Scope Improvements for Lessors, which clarified how lessors should apply certain aspects of the new lease standard. The Company intends to adopt this guidance in the

first

quarter of fiscal

2019

using the new transition method provided by ASU

No.

2018

11.

January 2017,

the FASB issued ASU

No.

2017

04,

Intangibles - Goodwill and Other (Topic

350

). This standard eliminates step

from the annual goodwill impairment test. This update is effective for annual periods beginning after

December 15, 2019,

and interim periods within those fiscal years, with early adoption permitted, and is to be applied on a prospective basis. The Company does

not

anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.

February 2018,

the FASB issued ASU

No.

2018

02,

Income Statement – Reporting Comprehensive Income (Topic

220

December 2017.

This update will be effective for the Company for fiscal years beginning after

December 15, 2018

and interim periods within those fiscal years. Early adoption is permitted. The Company does

not

anticipate that the adoption of this standard will have a significant impact on its consolidated financial statements or the related disclosures.

August 2018,

the FASB issued ASU

No.

2018

15,

Intangibles - Goodwill and Other - Internal-Use Software (Subtopic

350

first

quarter of

2020.

Early adoption is permitted. ASU

No.

2018

should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company has

not

yet determined the impact of this standard on its consolidated financial statements.

Note 1 - Description of Business and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Property Plant and Equipment Estimated Useful Lives [Table Text Block]

Computer equipment		3
Software		3
Furniture, fixtures, equipment and test equipment	3	-	10
Leasehold improvements	Shorter of estimated useful life or term of lease

Allowance for Doubtful Accounts [Table Text Block]

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions/ Write-offs of Accounts		Balance at End of Period
Allowance for doubtful accounts
2018	$	374	$	—	$	42	$	332
2017	$	200	$	174	$	—	$	374
2016	$	299	$	—	$	99	$	200

Note 2 - Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block]

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Accounts receivable, net of allowance	$	51,570		$	(979	)	$	50,591
Prepaid expenses and other current assets		9,562			(2,980	)		6,582
Deferred tax assets		19,044			443			19,487
Other non-current assets		6,972			(34	)		6,938
Deferred revenues – current portion		8,477			1,918			10,395
Long-term income taxes payable		3,751			(1,032	)		2,719
Other non-current liabilities		2,831			787			3,618
Accumulated deficit		(30,452	)		(5,223	)		(35,675	)

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Net loss	$	(7,716	)	$	(870	)	$	(8,586	)
Adjustments to reconcile loss to net cash provided by operating activities:
Deferred taxes		(4,171	)		(127	)		(4,298	)
Changes in operating assets and liabilities:
Accounts receivable		6,828			187			7,015
Prepaid expenses and other current assets		(2,115	)		588			(1,527	)
Other non-current assets		3,560			34			3,594
Deferred revenue		2,451			188			2,639

(In thousands)	As reported under Topic 606			Adjustments			Balances under Topic 605
Design-to-silicon-yield solutions	$	60,081		$	(711	)	$	59,370
Gainshare performance incentives		25,713			(470	)		25,243
Total revenue		85,794			(1,181	)		84,613
Gross profit		42,991			(1,181	)		41,810
Selling, general and administrative		23,934			(75	)		23,859
Total operating expenses		52,943			(75	)		52,868
Loss from operations		(9,952	)		(1,106	)		(11,058	)
Loss before taxes		(9,459	)		(1,106	)		(10,565	)
Income tax benefit		(1,743	)		(235	)		(1,978	)
Net loss	$	(7,716	)	$	(870	)	$	(8,586	)

Disaggregation of Revenue [Table Text Block]

	Year Ended December 31, 2018
Licenses and Gainshare Performance Incentives	$	31,336
Support and services		53,486
Other		972
Total	$	85,794

Note 3 - Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property, Plant and Equipment [Table Text Block]

	December 31,
	2018			2017
Computer equipment	$	10,536		$	10,729
Software		4,112			3,348
Furniture, fixtures, and equipment		4,688			3,676
Leasehold improvements		5,474			1,980
Test equipment		14,697			13,796
Construction-in-progress		20,293			12,527
		59,800			46,056
Less: accumulated depreciation and amortization		(24,119	)		(20,670	)
Total	$	35,681		$	25,386

Note 4 - Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Finite-Lived Intangible Assets [Table Text Block]

				December 31, 2018							December 31, 2017
	Amortization			Gross					Net		Gross					Net
	Period			Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
(Dollars in thousands)	(Years)			Amount		Amortization			Amount		Amount		Amortization			Amount
Customer relationships	1	-	9	$	6,740	$	(4,514	)	$	2,226	$	6,740	$	(4,145	)	$	2,595
Developed technology	4	-	9		15,820		(13,404	)		2,416		15,820		(12,829	)		2,991
Tradename	2	-	7		790		(648	)		142		790		(622	)		168
Patent	7	-	10		1,800		(1,520	)		280		1,800		(1,480	)		320
Total				$	25,150	$	(20,086	)	$	5,064	$	25,150	$	(19,076	)	$	6,074

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Year Ending December 31,
2019	$	1,009
2020		1,009
2021		833
2022		626
2023		626
2024 and thereafter		961
Total future amortization expense	$	5,064

Note 5 - Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Year Ending December 31,
2019	$	1,677
2020		1,811
2021		1,653
2022		1,484
2023		1,127
2024 and thereafter		3,673
Total future minimum lease payments	$	11,425

Note 7 - Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

	Stock Plans									Employee Stock Purchase Plan
	2018			2017			2016			2018			2017			2016
Expected life (in years)		4.43			4.42			4.40			1.25			1.25			1.25
Volatility		43.91	%		41.5	%		43.2	%		42.85	%		40.63	%		44.0	%
Risk-free interest rate		2.73	%		1.81	%		1.34	%		2.48	%		1.25	%		0.50	%
Expected dividend		—			—			—			—			—			—

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Years Ended December 31,
	2018		2017		2016
Costs of Design-to-silicon-yield solutions	$	3,554	$	4,606	$	4,427
Research and development		3,260		3,518		3,087
Selling, general and administrative		3,481		3,686		3,488
Stock-based compensation expenses	$	10,295	$	11,810	$	11,002

Share-based Compensation, Stock Options, Activity [Table Text Block]

	Outstanding Options
	Number of Options (in thousands)			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in thousands)
Outstanding, January 1, 2016		1,764		$	7.88
Granted (weighted average fair value of $5.36 per share)		99		$	14.55
Exercised		(393	)	$	7.56
Canceled		(31	)	$	13.82
Expired		(75	)	$	13.80
Outstanding, December 31, 2016		1,364		$	8.00
Granted (weighted average fair value of $5.92 per share)		150		$	16.28
Exercised		(440	)	$	6.42
Canceled		(25	)	$	15.03
Expired		(4	)	$	16.46
Outstanding, December 31, 2017		1,045		$	9.65
Granted (weighted average fair value of $4.08 per share)		116		$	10.35
Exercised		(81	)	$	6.93
Canceled		(30	)	$	13.41
Expired		(23	)	$	13.16
Outstanding, December 31, 2018		1,027		$	9.75		4.35	$	1,121
Vested and expected to vest, December 31, 2018		1,006		$	9.68		4.25	$	1,121
Exercisable, December 31, 2018		796		$	8.69		3.05	$	1,121

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Shares (in thousands)			Fair Value
Nonvested, January 1, 2016		1,166		$	17.03
Granted		963		$	14.41
Vested		(472	)	$	17.00
Forfeited		(115	)	$	15.73
Nonvested, December 31, 2016		1,542		$	15.50
Granted		849		$	16.43
Vested		(646	)	$	16.26
Forfeited		(128	)	$	15.71
Nonvested, December 31, 2017		1,617		$	15.66
Granted		983		$	8.66
Vested		(596	)	$	15.84
Forfeited		(169	)	$	14.83
Nonvested, December 31, 2018		1,835		$	11.93

Note 9 - Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	Year Ended December 31,
	201 8			201 7			2016
	(In thousands)
U.S.
Current	$	(84	)	$	(141	)	$	410
Deferred		(4,171	)		(471	)		208
Foreign
Current		347			254			329
Withholding		2,165			1,654			2,898
Deferred		—			(33	)		8
Total provision (benefit)	$	(1,743	)	$	1,263		$	3,853

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	Year Ended December 31,
	201 8			2017			201 6
Federal statutory tax provision	$	(1,986	)	$	(26	)	$	4,534
State tax provision		(133	)		(110	)		283
Stock compensation expense		768			(944	)		45
Tax credits		(2,682	)		(2,769	)		(4,000	)
Foreign tax, net		2,104			1,641			2,852
Tax law changes		—			3,247			—
Other		186			224			139
Tax provision (benefit)	$	(1,743	)	$	1,263		$	3,853

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	December 31,
	201 8			201 7
Deferred tax assets

Net operating loss carry forward	$	2,720		$	1,318
Research and development and other credit carry forward		17,750			16,626
Foreign tax credit carry forward		3,994			1,754
Accruals deductible in different periods		2,198			3,285
Intangible assets		1,081			1,325
Stock-based compensation		1,109			1,166
Valuation allowance		(9,808	)		(9,126	)
Subtotal	$	19,044		$	16,348

Deferred tax liabilities

Fixed assets		(710	)		(835	)
Net deferred tax assets	$	18,334		$	15,513

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

	Amount
Gross unrecognized tax benefits, January 1, 2016	$	10,979
Increases in tax positions for current year		1,118
Increase in tax positions for prior years		112
Lapse in statute of limitations		(269	)
Gross unrecognized tax benefits, December 31, 2016		11,940
Increases in tax positions for current year		1,166
Increases in tax positions for prior years		—
Lapse in statute of limitations		(217	)
Gross unrecognized tax benefits, December 31, 2017		12,889
Increases in tax positions for current year		664
Increases in tax positions for prior years		—
Lapse in statute of limitations		(261	)
Gross unrecognized tax benefits, December 31, 2018	$	13,292

SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member]

Summary of Valuation Allowance [Table Text Block]

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions/ Write-offs of Accounts		Balance at End of Period
Valuation allowance for deferred tax assets
2018	$	9,126	$	682	$	—	$	9,808
2017	$	6,798	$	2,328	$	—	$	9,126
2016	$	6,205	$	593	$	—	$	6,798

Note 10 - Net Income Per Share (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Year Ended December 31,
	2018			2017			2016
Numerator:
Net income (loss)	$	(7,716	)	$	(1,337	)	$	9,103
Denominator:
Basic weighted-average shares outstanding		32,169			32,038			31,373
Effect of dilutive options and restricted stock		—			—			1,058
Diluted weighted-average shares outstanding		32,169			32,038			32,431

Net income (loss) per share – Basic	$	(0.24	)	$	(0.04	)	$	0.29
Net income (loss) per share – Diluted	$	(0.24	)	$	(0.04	)	$	0.28

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Years Ended December 31,
	2018		2017		2016
Outstanding options		669		751		134
Nonvested shares of restricted stock units		1,060		411		18
Employee Stock Purchase Plan		237		214		121
Total		1,966		1,376		273

Note 11 - Customer and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block]

	Year Ended December 31,
Customer	2018			2017			2016
A		37	%		40	%		41	%
B		*			*	%		11	%

Receivables by Major Customers [Table Text Block]

	December 31,
Customer	2018			2017
A		35	%		41	%
C		21	%		15	%

Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block]

	Year Ended December 31,
	2018					2017					2016
	Revenues		Percentage of Revenues			Revenues		Percentage of Revenues			Revenues		Percentage of Revenues
United States	$	34,179		40	%	$	39,631		39	%	$	38,748		36	%
China		17,465		20			17,872		18			11,436		11
Taiwan		7,890		9			12,494		12			15,216		14
Germany		5,324		6			9,990		10			17,253		16
Rest of the world		20,936		25			21,884		21			24,808		23
Total revenue	$	85,794		100	%	$	101,871		100	%	$	107,461		100	%

Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block]

	December 31,
	201 8		201 7
United States	$	35,173	$	24,883
Rest of the world		508		503
Total long-lived assets, net	$	35,681	$	25,386

Note 12 - Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Assets		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Money market mutual funds		$	27,068			$	27,068			$	—			$	—

Assets		Total				Quoted Prices in Active Markets for Identical Assets (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Money market mutual funds		$	26,638			$	26,638			$	—			$	—

Note 13 - Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Information [Table Text Block]

	Year Ended December 31, 2018
	Q1			Q2			Q3			Q4
	(In thousands, except for per share amounts)
Total revenues	$	24,737		$	21,119		$	20,213		$	19,725
Gross profit	$	13,255		$	10,202		$	9,530		$	10,004
Net loss	$	(424	)	$	(2,096	)	$	(2,082	)	$	(3,114	)
Net loss per share:
Basic	$	(0.01	)	$	(0.07	)	$	(0.06	)	$	(0.10	)
Diluted	$	(0.01	)	$	(0.07	)	$	(0.06	)	$	(0.10	)

	Year Ended December 31, 2017
	Q1		Q2		Q3		Q4
	(In thousands, except for per share amounts)
Total revenues	$	24,289	$	24,289	$	26,517	$	26,776
Gross profit	$	12,858	$	12,910	$	14,086	$	14,495
Net income (loss)	$	517	$	189	$	590	$	(2,634	)
Net income (loss) per share:
Basic	$	0.02	$	0.01	$	0.02	$	(0.08	)
Diluted	$	0.02	$	0.01	$	0.02	$	(0.08	)

Note 1 - Description of Business and Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Number of Reporting Units	1
Goodwill, Impairment Loss	$ 0	$ 0
Unbilled Receivables, Current	22,200	22,200
Contract with Customer, Asset, Unbilled Receivables, Not Billable, Amount Expected to be Collected after Next Twelve Months	$ 5,300	$ 8,600
Capitalized Computer Software, Useful Life	6 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Loss Contingency Accrual, Ending Balance	$ 0
Customer Concentration Risk [Member] \| Accounts Receivable [Member] \| Two Customers [Member]
Concentration Risk, Percentage	56.00%	56.00%
Customer Concentration Risk [Member] \| Sales Revenue, Net [Member] \| One Customer [Member]
Concentration Risk, Percentage	37.00%	40.00%

Note 1 - Description of Business and Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2018
Computer Equipment [Member]
Property, plant and equipment, useful life (Year)	3 years
Software and Software Development Costs [Member]
Property, plant and equipment, useful life (Year)	3 years
Furniture and Fixtures [Member] \| Minimum [Member]
Property, plant and equipment, useful life (Year)	3 years
Furniture and Fixtures [Member] \| Maximum [Member]
Property, plant and equipment, useful life (Year)	10 years
Leasehold Improvements [Member]
Property, plant and equipment, useful life	Shorter of estimated useful life or term of lease

Note 1 - Description of Business and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Balance at Beginning of Period	$ 374	$ 200	$ 299
Charged to Costs and Expenses		174
Deductions/ Write-offs of Accounts	42		99
Balance at End of Period	$ 332	$ 374	$ 200

Note 2 - Revenue Recognition (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Retained Earnings (Accumulated Deficit), Ending Balance	$ (30,452)	$ (27,089)
Capitalized Contract Cost, Net, Total	500			$ 500
Revenue from Contract with Customer, Including Assessed Tax	85,794	101,871	$ 107,461
Contract with Customer, Liability, Noncurrent	1,000			900
Contract with Customer, Liability, Revenue Recognized	6,300
Revenue, Remaining Performance Obligation, Amount	47,100
Contract with Customer, Performance Obligation Satisfied in Previous Period	1,800
Capitalized Contract Cost, Amortization	400
Capitalized Contract Cost, Impairment Loss	0
Prepaid Expenses and Other Current Assets [Member]
Contract with Customer, Asset, Net, Current, Total	2,700			1,900
Prepaid Expenses and Other Current Assets and Other Non-current Assets [Member]
Deferred Costs, Total	200	600
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 85,794	$ 101,871	$ 107,461
Concentration Risk, Percentage	100.00%	100.00%	100.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Countries other than the United States [Member]
Concentration Risk, Percentage	60.00%	61.00%	64.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Transferred over Time [Member]
Concentration Risk, Percentage	63.00%	37.00%
Accounting Standards Update 2014-09 [Member]
Retained Earnings (Accumulated Deficit), Ending Balance				(4,400)
Accounts Receivable, Net, Total				800
Contract with Customer, Asset, Net, Total				1,900
Contract with Customer, Liability, Total				$ (2,500)
Accounting Standards Update 2014-09 [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member]
Retained Earnings (Accumulated Deficit), Ending Balance	$ (5,223)
Revenue from Contract with Customer, Including Assessed Tax	$ (1,181)

Note 2 - Revenue Recognition - Adoption of ASC 606 (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Jan. 01, 2018
Accounts receivable, net of allowance	$ 51,570				$ 57,564				$ 51,570	$ 57,564
Prepaid expenses and other current assets	9,562				5,069				9,562	5,069
Deferred tax assets	19,044				16,348				19,044	16,348
Other non-current assets	6,972				10,545				6,972	10,545
Deferred revenues – current portion	8,477				7,981				8,477	7,981
Long-term income taxes payable	3,751				3,902				3,751	3,902
Other non-current liabilities	2,831				2,269				2,831	2,269
Accumulated deficit	(30,452)				(27,089)				(30,452)	(27,089)
Net loss	(3,114)	$ (2,082)	$ (2,096)	$ (424)	(2,634)	$ 590	$ 189	$ 517	(7,716)	(1,337)	$ 9,103
Deferred taxes									(4,171)	(504)	216
Accounts receivable									6,828	(9,581)	(14,620)
Prepaid expenses and other current assets									(2,115)	373	(1,688)
Other non-current assets									3,560	2,103	(10,988)
Deferred revenue									2,451	(326)	4,772
Revenues									85,794	101,871	107,461
Gross profit	10,004	$ 9,530	$ 10,202	$ 13,255	$ 14,495	$ 14,086	$ 12,910	$ 12,858	42,991	54,350	63,013
Selling, general and administrative									23,934	23,684	22,056
Total operating expenses									52,943	54,160	50,047
Loss from operations									(9,952)	190	12,966
Loss before taxes									(9,459)	(74)	12,956
Income tax benefit									(1,743)	1,263	3,853
Accounting Standards Update 2014-09 [Member]
Accumulated deficit												$ (4,400)
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Accounts receivable, net of allowance	(979)								(979)
Prepaid expenses and other current assets	(2,980)								(2,980)
Deferred tax assets	443								443
Other non-current assets	(34)								(34)
Deferred revenues – current portion	1,918								1,918
Long-term income taxes payable	(1,032)								(1,032)
Other non-current liabilities	787								787
Accumulated deficit	(5,223)								(5,223)
Net loss									(870)
Deferred taxes									(127)
Accounts receivable									187
Prepaid expenses and other current assets									588
Other non-current assets									34
Deferred revenue									188
Revenues									(1,181)
Gross profit									(1,181)
Selling, general and administrative									(75)
Total operating expenses									(75)
Loss from operations									(1,106)
Loss before taxes									(1,106)
Income tax benefit									(235)
Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Accounts receivable, net of allowance	50,591								50,591
Prepaid expenses and other current assets	6,582								6,582
Deferred tax assets	19,487								19,487
Other non-current assets	6,938								6,938
Deferred revenues – current portion	10,395								10,395
Long-term income taxes payable	2,719								2,719
Other non-current liabilities	3,618								3,618
Accumulated deficit	$ (35,675)								(35,675)
Net loss									(8,586)
Deferred taxes									(4,298)
Accounts receivable									7,015
Prepaid expenses and other current assets									(1,527)
Other non-current assets									3,594
Deferred revenue									2,639
Revenues									84,613
Gross profit									41,810
Selling, general and administrative									23,859
Total operating expenses									52,868
Loss from operations									(11,058)
Loss before taxes									(10,565)
Income tax benefit									(1,978)
License and Service [Member]
Revenues									60,081	74,436	77,162
License and Service [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Revenues									(711)
License and Service [Member] \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenues									59,370
Gainshare Performance Incentives [Member]
Revenues									25,713	$ 27,435	$ 30,299
Gainshare Performance Incentives [Member] \| Difference between Revenue Guidance in Effect before and after Topic 606 [Member] \| Accounting Standards Update 2014-09 [Member]
Revenues									(470)
Gainshare Performance Incentives [Member] \| Calculated under Revenue Guidance in Effect before Topic 606 [Member]
Revenues									$ 25,243

Note 2 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues	$ 85,794	$ 101,871	$ 107,461
License [Member]
Revenues	31,336
Service [Member]
Revenues	53,486
Product and Service, Other [Member]
Revenues	$ 972

Note 3 - Property and Equipment (Details Textual) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Depreciation, Depletion and Amortization, Nonproduction, Total	$ 5.0	$ 4.8	$ 3.6
DFI Test Equipment [Member]
Construction in Progress, Gross	$ 17.4	$ 10.9

Note 3 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Property and equipment, gross	$ 59,800	$ 46,056
Less: accumulated depreciation and amortization	(24,119)	(20,670)
Total	35,681	25,386
Computer Equipment [Member]
Property and equipment, gross	10,536	10,729
Software and Software Development Costs [Member]
Property and equipment, gross	4,112	3,348
Furniture and Fixtures [Member]
Property and equipment, gross	4,688	3,676
Leasehold Improvements [Member]
Property and equipment, gross	5,474	1,980
Test Equipment [Member]
Property and equipment, gross	14,697	13,796
Construction in Progress [Member]
Property and equipment, gross	$ 20,293	$ 12,527

Note 4 - Goodwill and Intangible Assets (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill, Ending Balance	$ 1,923	$ 1,923
Finite-Lived Intangible Assets, Net, Ending Balance	$ 5,064	6,074
Finite-Lived Intangible Assets, Remaining Amortization Period	5 years 328 days
Amortization of Intangible Assets, Total	$ 1,010	$ 869	$ 805
Impairment of Intangible Assets, Finite-lived	$ 0

Note 4 - Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Gross Carrying Amount	$ 25,150	$ 25,150
Accumulated Amortization	(20,086)	(19,076)
Intangible assets, net	5,064	6,074
Customer Relationships [Member]
Gross Carrying Amount	6,740	6,740
Accumulated Amortization	(4,514)	(4,145)
Intangible assets, net	$ 2,226	2,595
Customer Relationships [Member] \| Minimum [Member]
Amortization Period (Year)	1 year
Customer Relationships [Member] \| Maximum [Member]
Amortization Period (Year)	9 years
Developed Technology Rights [Member]
Gross Carrying Amount	$ 15,820	15,820
Accumulated Amortization	(13,404)	(12,829)
Intangible assets, net	$ 2,416	2,991
Developed Technology Rights [Member] \| Minimum [Member]
Amortization Period (Year)	4 years
Developed Technology Rights [Member] \| Maximum [Member]
Amortization Period (Year)	9 years
Trade Names [Member]
Gross Carrying Amount	$ 790	790
Accumulated Amortization	(648)	(622)
Intangible assets, net	$ 142	168
Trade Names [Member] \| Minimum [Member]
Amortization Period (Year)	2 years
Trade Names [Member] \| Maximum [Member]
Amortization Period (Year)	7 years
Patents [Member]
Gross Carrying Amount	$ 1,800	1,800
Accumulated Amortization	(1,520)	(1,480)
Intangible assets, net	$ 280	$ 320
Patents [Member] \| Minimum [Member]
Amortization Period (Year)	7 years
Patents [Member] \| Maximum [Member]
Amortization Period (Year)	10 years

Note 4 - Goodwill and Intangible Assets - Annual Amortization of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
2019	$ 1,009
2020	1,009
2021	833
2022	626
2023	626
2024 and thereafter	961
Total future amortization expense	$ 5,064	$ 6,074

Note 5 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Operating Leases, Rent Expense, Net, Total	$ 2,500	$ 2,300	$ 2,200
Purchase Obligation, Due in Next Twelve Months	8,700
Loss Contingency Accrual, Ending Balance	$ 0

Note 5 - Commitments and Contingencies - Future Minimum Lease Payments Under Noncancelable Operating Leases (Details) $ in Thousands	Dec. 31, 2018 USD ($)
2019	$ 1,677
2020	1,811
2021	1,653
2022	1,484
2023	1,127
2024 and thereafter	3,673
Total future minimum lease payments	$ 11,425

Note 6 - Stockholders' Equity (Details Textual) - USD ($)		12 Months Ended			26 Months Ended
	May 29, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018	Oct. 25, 2016
Treasury Stock, Value, Acquired, Cost Method		$ 5,248,000	$ 13,418,000	$ 2,182,000
The 2016 Stock Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount						$ 25
Treasury Stock, Shares, Acquired		437,000			1,279,000
Treasury Stock, Value, Acquired, Cost Method		$ 5,200,000			$ 18,700,000
Treasury Stock Acquired, Average Cost Per Share					$ 14.59
The 2018 Stock Repurchase Program [Member]
Stock Repurchase Program, Authorized Amount	$ 25,000,000
Stock Repurchase Program, Period in Force	2 years
Treasury Stock, Shares, Acquired		0
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 25,000,000			$ 25,000,000

Note 7 - Employee Benefit Plans (Details Textual) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2001	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Nov. 16, 2011	Dec. 31, 2001
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period		30,000	25,000	31,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance		1,027,000	1,045,000	1,364,000	1,764,000
Allocated Share-based Compensation Expense, Total		$ 10,295,000	$ 11,810,000	$ 11,002,000
Share Price		$ 8.43
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value		$ 400,000	5,300,000	4,400,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value		$ 400,000
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent		15.00%
Employee Stock Option [Member]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		3 years 21 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 1,000,000
Stock Appreciation Rights (SARs) [Member]
Allocated Share-based Compensation Expense, Total		$ (24,000)	$ (30,000)	$ 116,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 8.66	$ 16.43	$ 14.41
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 292 days
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total		$ 17,600,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate	10.00%
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%
ESPP Maximum Annual Share Replenishment	675,000
ESPP Maximum Annual Share Replenishment Percentage of Prior Year Outstanding Company Common Stock	2.00%
Common Stock, Capital Shares Reserved for Future Issuance		8,734,000
Stock Issued During Period, Shares, Employee Stock Purchase Plans		201,000	200,000	173,000
Employee Stock Purchase Plan Weighted Average Purchase Price of Shares Purchased		$ 9.12	$ 9.33	$ 9
Number Of ESPP Shares Available For Future Issuance		4,738,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 3.62	$ 5.22	$ 3.69
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options		$ 1,500,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		1 year 211 days
Twenty Eleven Stock Incentive Plan [Member]
Common Stock, Capital Shares Reserved for Future Issuance		9,600,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized						9,050,000
Share Based Compensation Arrangement By Share Based Payment Award Shares Reserved Decrease Rate		1.33
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		3,000,000
Twenty Eleven Stock Incentive Plan [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Shares Previously Issued Under the 2001 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized							3,500,000
IDS Plan [Member] \| Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		4 years
Two Thousand One Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period		500,000
Outside of the 2011, 2001 or IDS Plans [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance		0

Note 7 - Employee Benefit Plans - Stock Options, Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Stock Plans [Member]
Expected life (Year)	4 years 156 days	4 years 153 days	4 years 146 days
Volatility	43.91%	41.50%	43.20%
Risk-free interest rate	2.73%	1.81%	1.34%
Expected dividend	0.00%	0.00%	0.00%
Employee Stock Purchase Plan [Member]
Expected life (Year)	1 year 91 days	1 year 91 days	1 year 91 days
Volatility	42.85%	40.63%	44.00%
Risk-free interest rate	2.48%	1.25%	0.50%
Expected dividend	0.00%	0.00%	0.00%

Note 7 - Employee Benefit Plans - Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Allocation of recognized period costs	$ 10,295	$ 11,810	$ 11,002
Cost of Sales [Member]
Allocation of recognized period costs	3,554	4,606	4,427
Research and Development Expense [Member]
Allocation of recognized period costs	3,260	3,518	3,087
Selling, General and Administrative Expenses [Member]
Allocation of recognized period costs	$ 3,481	$ 3,686	$ 3,488

Note 7 - Employee Benefits Plans - Stock Options Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Outstanding (in shares)	1,045	1,364	1,764
Outstanding, weighted average exercise price (in dollars per share)	$ 9.65	$ 8	$ 7.88
Granted (in shares)	116	150	99
Granted, weighted average exercise price (in dollars per share)	$ 10.35	$ 16.28	$ 14.55
Exercised (in shares)	(81)	(440)	(393)
Exercised, weighted average exercise price (in dollars per share)	$ 6.93	$ 6.42	$ 7.56
Canceled (in shares)	(30)	(25)	(31)
Canceled, weighted average exercise price (in dollars per share)	$ 13.41	$ 15.03	$ 13.82
Expired (in shares)	(23)	(4)	(75)
Expired, weighted average exercise price (in dollars per share)	$ 13.16	$ 16.46	$ 13.80
Outstanding (in shares)	1,027	1,045	1,364
Outstanding, weighted average exercise price (in dollars per share)	$ 9.75	$ 9.65	$ 8
Outstanding, weighted average remaining contractual term (Year)	4 years 127 days
Outstanding, aggregate intrinsic value	$ 1,121
Vested and expected to vest, December 31, 2018 (in shares)	1,006
Vested and expected to vest, weighted average exercise price (in dollars per share)	$ 9.68
Vested and expected to vest, weighted average remaining contractual term (Year)	4 years 91 days
Vested and expected to vest, aggregate intrinsic value	$ 1,121
Exercisable, December 31, 2018 (in shares)	796
Exercisable, weighted average exercise price (in dollars per share)	$ 8.69
Exercisable, weighted average remaining contractual term (Year)	3 years 18 days
Exercisable, aggregate intrinsic value	$ 1,121

Note 7 - Employee Benefits Plans - Stock Options Activity (Details) (Parentheticals) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Weighted average fair value (in dollars per share)	$ 4.08	$ 5.92	$ 5.36

Note 7 - Employee Benefit Plans - Nonvested Restricted Stock Units Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Nonvested, Balance (in shares)	1,835
Nonvested, Balance (in dollars per share)	$ 11.93
Restricted Stock Units (RSUs) [Member]
Nonvested, Balance (in shares)	1,617	1,542	1,166
Nonvested, Balance (in dollars per share)	$ 15.66	$ 15.50	$ 17.03
Granted (in shares)	983	849	963
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 8.66	$ 16.43	$ 14.41
Vested (in shares)	(596)	(646)	(472)
Vested (in dollars per share)	$ 15.84	$ 16.26	$ 17
Forfeited (in shares)	(169)	(128)	(115)
Forfeited (in dollars per share)	$ 14.83	$ 15.71	$ 15.73
Granted (in dollars per share)	8.66	16.43	14.41
Vested (in dollars per share)	15.84	16.26	17
Forfeited (in dollars per share)	$ 14.83	$ 15.71	$ 15.73
Nonvested, Balance (in shares)		1,617	1,542
Nonvested, Balance (in dollars per share)		$ 15.66	$ 15.50

Note 8 - Restructuring Charges (Details Textual) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Restructuring Charges, Total			$ 576,000
Employee Severance [Member] \| Reduction in Its Workforce to Reduce Expenses [Member]
Restructuring Charges, Total	$ 576,000
Payments for Restructuring	$ 332,000
Employee Severance [Member] \| Reduction in Its Workforce to Reduce Expenses [Member] \| Scenario, Forecast [Member]
Payments for Restructuring		$ 244,000

Note 9 - Income Taxes (Details Textual) - USD ($)	12 Months Ended
Note 9 - Income Taxes (Details Textual) - USD ($)	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%		35.00%
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ (11,100,000)	$ (1,200,000)	$ 11,300,000
Income (Loss) from Continuing Operations before Income Taxes, Foreign	1,600,000	1,100,000	1,600,000
Deferred Tax Assets, Valuation Allowance, Total	9,808,000	9,126,000
Deferred Tax Assets, Net, Total	18,334,000	15,513,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total	800,000	700,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total	84,000	135,000	72,000
Unrecognized Tax Benefits, Ending Balance	13,292,000	12,889,000	$ 11,940,000	$ 10,979,000
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	7,800,000
Unrecognized Tax Benefits In Long Term Liabilities	3,000,000
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued in Long Term Liabilities	800,000
Unrecognized Tax Benefits In Deferred Tax Assets	10,300,000
Unrecognized Tax Benefits In Deferred Tax Asset Subject To Full Valuation Allowance	5,500,000
Domestic Tax Authority [Member]
Tax Credit Carryforward, Amount	13,600,000
Domestic Tax Authority [Member] \| Internal Revenue Service (IRS) [Member]
Operating Loss Carryforwards, Total	9,900,000
State and Local Jurisdiction [Member]
Tax Credit Carryforward, Amount	17,700,000
State and Local Jurisdiction [Member] \| California Franchise Tax Board [Member]
Operating Loss Carryforwards, Total	5,900,000
Deferred Tax Assets, Valuation Allowance, Total	9,700,000	$ 9,000,000
State and Local Jurisdiction [Member] \| California Franchise Tax Board [Member] \| Syntricity [Member]
Operating Loss Carryforwards, Total	$ 100,000

Note 9 - Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
U.S.
Current	$ (84)	$ (141)	$ 410
Deferred	(4,171)	(471)	208
Foreign
Current	347	254	329
Withholding	2,165	1,654	2,898
Deferred		(33)	8
Tax provision (benefit)	$ (1,743)	$ 1,263	$ 3,853

Note 9 - Income Taxes - Income Tax Reconciliation (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Dec. 31, 2016

Federal statutory tax provision

$ (1,986)

$ (26)

$ 4,534

State tax provision

(133)

(110)

283

Stock compensation expense

^[1]

768

(944)

Tax credits

(2,682)

(2,769)

(4,000)

Foreign tax, net

2,104

1,641

2,852

Tax law changes

3,247

Other

186

224

139

Tax provision (benefit)

$ (1,743)

$ 1,263

$ 3,853

[1]

Due to the adoption of ASU 2016-09, excess tax benefits from share-based award activity for the year ended December 31, 2016 are reflected as a reduction of the provision for income taxes, whereas they previously were recognized in equity. See Note 1 "Business and Significant Accounting Policies" in the Notes to the Consolidated Financial Statements for additional information related to this adoption.

Note 9 - Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Net operating loss carry forward	$ 2,720	$ 1,318
Research and development and other credit carry forward	17,750	16,626
Foreign tax credit carry forward	3,994	1,754
Accruals deductible in different periods	2,198	3,285
Intangible assets	1,081	1,325
Stock-based compensation	1,109	1,166
Valuation allowance	(9,808)	(9,126)
Subtotal	19,044	16,348
Deferred tax liabilities
Fixed assets	(710)	(835)
Net deferred tax assets	$ 18,334	$ 15,513

Note 9 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross unrecognized tax benefits	$ 12,889	$ 11,940	$ 10,979
Increases in tax positions for current year	664	1,166	1,118
Increase in tax positions for prior years			112
Lapse in statute of limitations	(261)	(217)	(269)
Gross unrecognized tax benefits	$ 13,292	$ 12,889	$ 11,940

Note 9 - Income Taxes - Valuation Allowance of Deferred Tax Assets (Details) - SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2018
Balance at Beginning of Period	$ 9,126	$ 6,798	$ 6,205
Charged to Costs and Expenses	682	2,328	593
Deductions/ Write-offs of Accounts
Balance at End of Period	$ 9,126	$ 6,798	$ 6,205	$ 9,808

Note 10 - Net Income Per Share - Calculation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Numerator:
Net income (loss)	$ (3,114)	$ (2,082)	$ (2,096)	$ (424)	$ (2,634)	$ 590	$ 189	$ 517	$ (7,716)	$ (1,337)	$ 9,103
Basic weighted-average shares outstanding (in shares)									32,169	32,038	31,373
Effect of dilutive options and restricted stock (in shares)											1,058
Diluted weighted-average shares outstanding (in shares)									32,169	32,038	32,431
Net income (loss) per share – Basic (in dollars per share)	$ (0.10)	$ (0.06)	$ (0.07)	$ (0.01)	$ (0.08)	$ 0.02	$ 0.01	$ 0.02	$ (0.24)	$ (0.04)	$ 0.29
Net income (loss) per share – Diluted (in dollars per share)	$ (0.10)	$ (0.06)	$ (0.07)	$ (0.01)	$ (0.08)	$ 0.02	$ 0.01	$ 0.02	$ (0.24)	$ (0.04)	$ 0.28

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(19))
-URI http://asc.fasb.org/extlink&oid=114873790&loc=SL114874131-224263

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 7
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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Note 10 - Net Income Per Share - Anti-dilutive Securities (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Anti-dilutive securities (in shares)	1,966	1,376	273
Employee Stock Option [Member]
Anti-dilutive securities (in shares)	669	751	134
Restricted Stock Units (RSUs) [Member]
Anti-dilutive securities (in shares)	1,060	411	18
Employee Stock Purchase Plan [Member]
Anti-dilutive securities (in shares)	237	214	121

Note 11 - Customer and Geographic Information (Details Textual)	9 Months Ended
	Sep. 30, 2018
Number of Operating Segments	1

Note 11 - Customer and Geographic Information - Revenue Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Sales Revenue, Net [Member]	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Customer A [Member]
Revenue Percentage by Major Customer	37.00%	40.00%	41.00%
Customer B [Member]
Revenue Percentage by Major Customer			11.00%

Note 11 - Customer and Geographic Information - Receivables Percentage by Major Customers (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member]	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Customer A [Member]
Revenue Percentage by Major Customer	35.00%	41.00%
Customer C [Member]
Revenue Percentage by Major Customer	21.00%	15.00%

Note 11 - Customer and Geographic Information - Revenues by Geographic Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenue from Contract with Customer, Including Assessed Tax	$ 85,794	$ 101,871	$ 107,461
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 85,794	$ 101,871	$ 107,461
Concentration Risk, Percentage	100.00%	100.00%	100.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| UNITED STATES
Revenue from Contract with Customer, Including Assessed Tax	$ 34,179	$ 39,631	$ 38,748
Concentration Risk, Percentage	40.00%	39.00%	36.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| CHINA
Revenue from Contract with Customer, Including Assessed Tax	$ 17,465	$ 17,872	$ 11,436
Concentration Risk, Percentage	20.00%	18.00%	11.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| TAIWAN, PROVINCE OF CHINA
Revenue from Contract with Customer, Including Assessed Tax	$ 7,890	$ 12,494	$ 15,216
Concentration Risk, Percentage	9.00%	12.00%	14.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| GERMANY
Revenue from Contract with Customer, Including Assessed Tax	$ 5,324	$ 9,990	$ 17,253
Concentration Risk, Percentage	6.00%	10.00%	16.00%
Geographic Concentration Risk [Member] \| Sales Revenue, Net [Member] \| Rest of the World [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 20,936	$ 21,884	$ 24,808
Concentration Risk, Percentage	25.00%	21.00%	23.00%

Note 11 - Customer and Geographic Information - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Long-lived assets	$ 35,681	$ 25,386
UNITED STATES
Long-lived assets	35,173	24,883
Rest of the World [Member]
Long-lived assets	$ 508	$ 503

Note 12 - Financial Instruments (Details Textual) - Foreign Exchange Contract [Member] - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Derivative Asset, Notional Amount	$ 8,200,000
Other Current Assets [Member]
Derivative Asset, Current	55,000
Other Nonoperating Income (Expense) [Member]
Derivative, Gain (Loss) on Derivative, Net, Total	$ (700,000)	$ 700,000	$ (400,000)

Note 12 - Financial Instruments - Fair Value, Assets Measured on a Recurring Basis (Details) - Money Market Funds [Member] - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Money market mutual funds	$ 27,068	$ 26,638
Fair Value, Inputs, Level 1 [Member]
Money market mutual funds	27,068	26,638
Fair Value, Inputs, Level 2 [Member]
Money market mutual funds
Fair Value, Inputs, Level 3 [Member]
Money market mutual funds

Note 13 - Selected Quarterly Financial Data (Unaudited) - Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Total revenues	$ 19,725	$ 20,213	$ 21,119	$ 24,737	$ 26,776	$ 26,517	$ 24,289	$ 24,289
Gross profit	10,004	9,530	10,202	13,255	14,495	14,086	12,910	12,858	$ 42,991	$ 54,350	$ 63,013
Net income (loss)	$ (3,114)	$ (2,082)	$ (2,096)	$ (424)	$ (2,634)	$ 590	$ 189	$ 517	$ (7,716)	$ (1,337)	$ 9,103
Basic (in dollars per share)	$ (0.10)	$ (0.06)	$ (0.07)	$ (0.01)	$ (0.08)	$ 0.02	$ 0.01	$ 0.02	$ (0.24)	$ (0.04)	$ 0.29
Diluted (in dollars per share)	$ (0.10)	$ (0.06)	$ (0.07)	$ (0.01)	$ (0.08)	$ 0.02	$ 0.01	$ 0.02	$ (0.24)	$ (0.04)	$ 0.28